A structural model of entry and fiscal policy is presented. It shows that taxation of variable production costs can increase product prices, lower competition, and reduce the availability of new products in small markets. The model's test is based on a unique nationwide fiscal experiment. We...

The article deals with the problem of West European and Nordic countries small economies as well as ultra-small autonomous territories of Alands and Faeroes island's development. The latter are considered as the <<competitive sub-peripheries> areas due to the special industrial organization development, stimulated by the...</<competitive>

The main contribution of entrepreneurship theory to economics is to provide an account of market performance in disequilibrium but little empirical research has examined firm entry and exit in this context. We redress this by modelling the interrelationship between firm entry and exit in...

Dominant platform businesses often develop products in adjacent markets to complement their core business. One common approach used to gain traction in these adjacent markets has been to pursue a tying strategy. For example, Microsoft pre-installed Internet Explorer into Windows, and Apple set...

We revisit the concept of Diversified Quality Production (DQP), which we introduced about thirty years ago. Our purpose is to examine the extent to which the concept can still be considered tenable for describing and explaining the development of the interaction between the political economy and...

I model the strategic interaction between firms, that face decisions on investment, forward contracts and spot market quantities. For an investment decision that takes place after firms have contracted forward but before firms compete on the spot market (medium term investment), competition...

The present paper reconsiders the inside innovators’ licensing problem under incomplete information. Employing an optimal mechanism design approach, we show that, contrary to what is claimed in the literature, the optimal mechanism may prescribe fixed fees, royalty rates lower than the cost...