Publications

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July 2013
Technical Note

Competition Simulator Exercise: Questions

By: Eric Van den Steen

In the Competition Simulator Exercise, students explore through trial and error some important economic foundations of competitive strategy and managerial economics. In particular, the simulator lets students explore horizontal differentiation with and without price... View Details

Keywords: Economics Of Strategy; Economics Of Competition; Competition; Economics; Game Theory; Competitive Strategy; Marketing Strategy

Educators

2010
Working Paper

Competing Complements

By: Ramon Casadesus-Masanell, Barry Nalebuff and David B. Yoffie

In Cournot's model of complements, the producers of A and B are both monopolists. This paper extends Cournot's model to allow for competition between complements on one side of the market. Consider two complements, A and B, where the A + B bundle is valuable only when... View Details

Keywords: Profit; Revenue; Monopoly; Game Theory; Competition

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September 2007
Article

Do Vertical Mergers Facilitate Upstream Collusion?

By: Volker Nocke and Lucy White

We investigate the impact of vertical mergers on upstream firms' ability to collude when selling to downstream firms in a repeated game. We show that vertical mergers give rise to an outlets effect: the deviation profits of cheating unintegrated firms are reduced as... View Details

Keywords: Mergers and Acquisitions; Profit; Game Theory; Sales; Vertical Integration

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19 Feb 2014
Research & Ideas

Racist Umpires and Monetary Ministers

waded through pitching data for every Major League Baseball game from 2004 to 2008. When the data was analyzed, they found that indeed, race matters. When umpires and pitchers are a different race or ethnicity, the umpire is slightly more... View Details

Keywords: by Michael Blanding; Sports; Information; Publishing

Research Summary

Overview

By: Ramon Casadesus-Masanell

I study strategic interaction between organizations that operate different business models. View Details

Keywords: Business Models; Industrial Organization; Strategic Interaction; Competitiveness; Strategy; Competition; Game Theory; Cooperation; Competitive Advantage; Competitive Strategy; China; Europe

June 2013 (Revised November 2022)
Exercise

Competition Simulator Exercise

By: Eric J. Van den Steen

In the Competition Simulator Exercise, students explore through trial and error some important economic foundations of competitive strategy and managerial economics. In particular, the nine simulator exercises let students explore horizontal differentiation with and... View Details

Keywords: Competition; Economics; Game Theory; Competitive Strategy; Learning; Mathematical Methods; Analysis

December 2010
Article

Social Preferences and Strategic Uncertainty: An Experiment on Markets and Contracts

This paper reports a three-phase experiment on a stylized labor market. In the first two phases, agents face simple games, which we use to estimate subjects' social and reciprocity concerns. In the last phase, four principals compete by offering agents a contract from... View Details

Keywords: Strategy; Risk and Uncertainty; Markets; Contracts; Decisions; Distribution; Labor; Game Theory

30 Sep 2002
Research & Ideas

Use the Psychology of Pricing To Keep Customers Returning

people are more likely to go to a ball game when they have purchased tickets to a single game than when they purchased tickets to multiple games. In the first case, the cost of that View Details

Keywords: by Manda Mahoney

July 2014
Article

Accounting for Crises

By: Venky Nagar and Gwen Yu

We provide among the first empirical evidence consistent with recent macro global-game crisis models, which show that the precision of public signals can coordinate crises (e.g., Angeletos and Werning, 2006; Morris and Shin, 2002, 2003). In these models,... View Details

Keywords: Corporate Disclosure; Mathematical Methods; Game Theory; Financial Markets; Forecasting and Prediction; Accounting; Financial Crisis

SSRN

20 Feb 2007
First Look

First Look: February 20, 2007

research. Learning and Equilibrium as Useful Approximations: Accuracy of Prediction on Randomly Selected Constant Sum Games Authors:Ido Erev, Alvin E. Roth, R. Slonim, and Greg Barron Periodical:Economic View Details

Keywords: Martha Lagace

November 2006
Case

Introducing Frequent Flyer Programs

By: Dennis A. Yao

Allows students to explore the value to American Airlines of introducing a frequent flyer program in 1981. View Details

Keywords: Value; Management Analysis, Tools, and Techniques; Mathematical Methods; Game Theory; Competitive Advantage; Programs; Customers; Air Transportation Industry

Educators

24 Nov 2009
First Look

First Look: Nov. 24

pioneering work of Howard Raiffa and often expressed in the pages of the Negotiation Journal, the emergent prescriptive field of "negotiation analysis" progressively developed from Raiffa's early contributions to game View Details

Keywords: Martha Lagace

December 2022
Article

I Don't 'Recall': The Decision to Delay Innovation Launch to Avoid Costly Product Failure

By: Byungyeon Kim, Oded Koenigsberg and Elie Ofek

Innovations embody novel features or cutting-edge components aimed at delivering desired customer benefits. Oftentimes, however, we observe the need to recall new products shortly after their introduction. Indeed, a firm may rush an innovation to market in an attempt... View Details

Keywords: Innovation Management; Innovation And Strategy; Product Development Strategy; Product Introduction; Quality Control; Product Recalls; Game Theory; Market Timing; Innovation Strategy; Product Launch; Product Development

Article

Bargaining with Imperfect Enforcement

By: Lucy White and Mark Williams

The game-theoretic bargaining literature insists on non-cooperative bargaining procedure but allows 'cooperative' implementation of agreements. The effect of this is to allow free-reign of bargaining power with no check upon it. In reality, courts cannot... View Details

Keywords: Agreements and Arrangements; Body of Literature; Contracts; Motivation and Incentives; Code Law; Game Theory

June–July 2013
Article

Firm Rivalry, Knowledge Accumulation, and MNE Location Choices

By: Juan Alcacer, Cristian Deszo and Minyuan Zhao

The international business (IB) literature has mostly emphasized the impact of location and firm characteristics on location choices. However, industries with a significant presence of multinational enterprises (MNEs) are oligopolistic in nature, which suggests that... View Details

Keywords: Geographic Location; Competition; Multinational Firms and Management; Knowledge Acquisition; Game Theory; Global Strategy

24 Jun 2013
Research & Ideas

Is Your iPhone Turning You Into a Wimp?

poses and less likely in constrictive poses. Now they wanted to look into whether behavior was affected during the poses. This might help to answer questions like: Would people be more likely to join a game of online poker while using a... View Details

Keywords: by Carmen Nobel; Technology; Consumer Products

spring 1994
Article

Unilateral Commitments and the Importance of Process in Alliances

By: Ranjay Gulati, Tarun Khanna and Nitin Nohria

How the partners in an alliance view their joint venture can have much to do with its success or failure. Each partner fears that the other will get the larger payoff by acting opportunistically while it cooperates in good faith. The result is that both partners choose... View Details

Keywords: Management Style; Partners and Partnerships; Joint Ventures; Management Practices and Processes; Alliances; Trust; Game Theory