I examine oligopolistic competition for time inconsistent consumers. The two cases of investment (health clubs) and leisure goods (credit cards) have different implications for strategy. For leisure goods the firms offer introductory rates at the fully rational consumer level, but consumers end up paying higher fixed rates later. In the limit, the markups go to zero. For investment goods there ...

Investment decisions occupy a central role among the determinants of growth. As empirical studies such as Levine and Renelt (1992) have revealed, fixed investment as a share of gross domestic product is the most robust explanatory variable of a country's growth. DeLong and Summers (1991) also provide evidence emphasizing the correlation of investment in equipment and machinery with growth. New ...

— According to advocates, eco-certification can stem environmental damages from tourism in developing countries. Yet we know little about tourism operators’ economic incentives to get certified. To help fill that gap, we use detailed panel data to analyze the Blue Flag beach certification program in Costa Rica where nature-based tourism has caused significant environmental damage. We use new ho...

The iterative elimination of strongly dominated strategies (IESDS) and mixed-equilibrium solution concepts are studied in an iterated two-person investment game with discrete strategy spaces, non-recoverable investments, and either equal or unequal investment capital. In this game, the player investing the largest amount wins the competition and receives a fixed reward; ties are counted as loss...

This paper uses individual data from Japan to explore how the circumstances of where a person resides are related to the degree of their investment in social capital. Controlling for unobserved area-specific fixed effects and various individual characteristics, I found; (1) Not only that homeownership and length of residence are positively related to investment in social capital, but also that ...

We consider a symmetric three-stage game played by two regulator-firm hierarchies to capture the scale and technology effects. Each firm produces one good sold on the market. Firms can invest in R&D in order to lower their fixed emission/output ratio and are regulated with costly public funds. Opening markets to international trade leads to both more investment in R&D and production. When the s...

1. Introduction As one of the basic drives of globalization, Foreign Direct Investment (FDI) is playing an active role in the economic development of NIEs. For instance, in China 2004, fixed assets investment, industry value added, and export of FDI firms accounts for 12%, 28%, and 57% of nation's total amount. 24 million employees are hired by FDI firms which accounts for 10% of all non-agricu...

The opinions expressed are those of the BlackRock Investment Instititute as of August 2011, and may change as subsequent conditions vary. } The emerging markets (EMs) have provided major investment opportunities over the last decade—whether in the equity, fixed income or currency spaces. } The global growth landscape and investment opportunity set have changed significantly in recent years, but...

Here we study the performance of a one-period investment X0 > 0 (dollars) shared among several different assets. Our criterion for measuring performance will be the mean and variance of its rate of return; the variance being viewed as measuring the risk involved. Among other things we will see that the variance of an investment can be reduced simply by diversifying, that is, by sharing the X0 a...

Today, transportation is one of the substructure parts of society that not only affects the economical growth process, but also is changed in development. The transportation substructure is one of the substructure parts of services has an important position in the economical development of countries. An efficient and appropriate transportation network causes goods transportation and services co...