factors determining the location decisions of spanish mnes an analysis based on the investment development path on the basis of theoretical assumptions approached via the investment development path idp this study examines the most important factors for and against the location decisions in foreign direct investment taken by multinational enterprises considering host countries at very different stages of economic development latin american and european union countries we carry out different kinds of analysis on a sample of 103 firms belonging to a medium sized country that has recently achieved the status of developed country the results reveal that the importance that home country firm managers give to diverse location factors depends to a certain extent on the stage that each group of host countries has reached in the idp in line with prior research we find that firm managers consider mainly the group of factors associated with strategic asset seeking when deciding to locate their investments in the group of more developed countries european union in contrast our results show that when these firm managers choose the group of less developed countries latin america social and cultural factors play a more determinant role thus suggesting the importance of historical and cultural ties between the home and host countries

fiscal shenanigans targeted federal health care funds and patient mortality we explore the effectiveness of matching grants when lower levels of government can expropriate some of the funds for other uses using data on the medicaid disproportionate share program we identify states that were most able to expropriate funds payments to public hospitals in these states were systematically diverted and had no significant impact on patient mortality payments that were not expropriated were associated with significant declines in patient mortality overall subsidies were an effective mechanism for improving outcomes for the poor but the impact was limited by the ability of state and local governments to divert the targeted funds

endogenous efficiency gains from mergers this article analyzes endogenous efficiency gains from mergers it considers oligopolistic homogeneous good markets and duopolistic and triopolistic markets under product differentiation pd quantity and price competition in a two stage game firms invest in cost reducing innovation with and without mergers and then compete in output prices it is found that in homogeneous good markets all possible mergers generate efficiency gains and that these are most significant when r d spillovers are very low or very high efficiency gains increase with the number of insiders and generally decrease with the number of outsiders with pd in most cases the merger generates efficiency gains when spillovers and or pd are sufficiently high with pd efficiency gains increase with spillovers but may increase or decrease with the level of pd the implications of the results for the relationship between competition and innovation outputs and for merger policy are discussed

access price regulation investment and entry in telecommunications abstract we consider a model with a vertically integrated monopolist network provider who faces rival operators in the retail market we examine the network operator s incentives for infrastructure investment we find that investments are below the social optimum even when there is no regulation and access price regulation further reduces investment incentives we show that the underinvestment problem may have negative effects on the viability of competition access price regulation does not necessarily reduce the likelihood of foreclosure and in the presence of regulation rivals are most likely to be foreclosed when they would bring highest benefits to consumers

the rise of the states u s fiscal decentralization in the postwar period article i nfo article history one of the most dramatic changes in the fiscal federalism landscape during the postwar period has been the rapid growth in state budgets which almost tripled as a share of gdp and doubled as a share of government spending between 1952 and 2006 we argue that the greater role of states cannot be easily explained by changes in tiebout forces of fiscal competition such as mobility and voting patterns and are not accounted for by demographic or income trends rather we demonstrate that much of the growth in state budgets has been driven by changes in intergovernmental interactions restricted federal grants to states have increased and federal policy and legal constraints have also mandated or heavily incentivized state own source spending particularly in the areas of education health and public welfare these outside pressures moderate the forces of fiscal competition and must be taken into account when assessing the implications of observed revenue and spending patterns

cooperative and noncooperative r d in an oligopoly with spillovers this paper examines the positive and normative effects of cooperative r d whereby member firms commit themselves to the joint profit maximizing level of r d in a precompetitive stage but remain fierce competitors in the product market vis a vis noncooperative r d socially first best r d and socially second best r d in the presence of sufficiently large r d spillovers neither noncooperative nor cooperative equilibria achieve even second best r d levels in the absence of spillover effects however while the cooperative r d level remains socially insufficient the noncooperative level may overshoot first and second best levels of r d copyright 1992 by american economic association

do country level institutional frameworks and interfirm governance arrangements substitute or complement in international business relationships interfirm relationships among partners from institutionally distant environments are subject to governance difficulties owing to the paucity of shared cognitive and regulatory frameworks we examine the potential of formal contracting and relational governance developed at the partnership level to overcome the formal and informal institutional gap at the country level empirical results from a sample of 184 international partnerships of large us firms support an overall substitutive relationship between informal institutional frameworks and interorganizational relational arrangements whereby the performance benefits of relational governance are reinforced at higher degrees of informal institutional distance contrastingly formal institutional frameworks and contractual governance are found to have a complementary relationship with performance gains from formal contracting undermined at higher degrees of formal distance

from the editors common method variance in international business research jibs receives many manuscripts that report findings from analyzing survey data based on same respondent replies this can be problematic since same respondent studies can suffer from common method variance cmv currently authors who submit manuscripts to jibs that appear to suffer from cmv are asked to perform validity checks and resubmit their manuscripts this letter from the editors is designed to outline the current state of best practice for handling cmv in international business research

an analysis of cooperative research and development i analyze the effects of cooperative research whereby member firms agree to share the costs andfruits of a research project before they undertake it in this model industrywide agreements tend to have socially beneficial effects when the degree ofproduct market competition is low when there are r d spillovers in the absence of cooperation when a high degree of sharing is technologically feasible and when the agreement concerns basic research rather than development activities i show that a royalty free cross licensing agreement among any number offirms lowers the equilibrium level of innovation even though it increases the efficiency of r d through sharing

asset specificity and foreign market entry mode choice of small and medium sized enterprises the moderating influence of knowledge safeguards and institutional safeguards according to transaction cost economics tce reasoning firms choose equity as opposed to non equity foreign market entry modes to safeguard specific assets the present paper contextualizes the well researched relationship between asset specificity and foreign market entry mode choice by introducing knowledge safeguards international experience host country networks and imitation and institutional safeguards property rights protection and cultural proximity as alternative mechanisms for securing a firm s specific assets testing our hypotheses on a sample of 206 small and medium sized enterprises we find that knowledge safeguards and institutional safeguards weaken the effect of asset specificity on the choice of equity foreign market entry modes contextualizing the relationship between asset specificity and foreign market entry mode choice helps to enhance our understanding of the scope conditions of tce based entry mode studies and beyond

what makes a manufacturing firm effective for service innovation the role of intangible capital under strategic and environmental conditions abstract while an increasing body of research addresses the importance of service innovation to manufacturing firms little work has examined what makes a manufacturing firm effective for service innovation and under what strategic and environmental conditions this article investigates 1 what types of intangible capital are necessary for a manufacturing firm to develop new services 2 whether a focus on an intangible capital will have the greatest effect on new service success and 3 whether the effectiveness of a specific intangible capital varies from the combined conditions of strategic flexibility and environmental uncertainty building on service dominant logic this study theorizes that the four types of intangible capital market service delivery interaction and learning are necessary for manufacturing firms to create superior new services the authors test their hypotheses with a sample of 293 matched responses collected from leading manufacturing firms the results indicate that all four types of intangible capital have significant positive relationships with new service success however not all intangible capital is equally effective as to which learning capital has the strongest effect across four combined conditions of both high and low levels of strategic flexibility and environmental uncertainty this study contributes to the manufacturing literature by shedding light on a neglected construct intangible capital and offering valuable insights for manufacturing managers seeking to determine when high low environmental uncertainty and how high low strategic flexibility firms intangible capital should be emphasized in order to achieve the greatest effectiveness of service innovation

outside in global demand heterogeneity and dynamic capabilities of multinational enterprises we conceptualize the dynamic capabilities of multinational enterprises mnes as learning and adaptation capabilities that address the pressure of global integration and local responsiveness complementing the extant literature on dynamic capabilities which is focused on the supply side our study draws attention to the demand side influences especially in terms of global demand heterogeneity we propose that global demand heterogeneity provides pressures and opportunities for mnes to learn and adapt and thus positively relates to the development of mne dynamic capabilities however external sources per se may be insufficient firm specific advantages particularly human capital at the managerial and employee levels facilitate the internalization of external knowledge and pressure into the development of dynamic capabilities an empirical study of chinese multinational service firms strongly supports these arguments

from the editors how to write articles that are relevant to practice although the journal of international business studies is not a practice oriented journal thinking deeper about the practical relevance of our articles can only help enrich them and help decision makers implement better decisions however while many academic articles in social sciences go to great lengths to explain their theoretical and empirical impact in many cases their explanation of practical relevance is a paragraph in the conclusion section with a few cursory ideas that appear to be an afterthought rather than an integral part of the article here we provide suggestions for crafting a practical implications section that is relevant for decision makers

cooperation spillovers and price competition in experimental markets i introduction both competition and cooperation are important for the successful functioning of many economic systems for example firms compete in markets but they also cooperate with one another through arrangements such as research joint ventures lobbying cooperative marketing agreements and strategic alliances in this paper we use experiments to examine how competitive interactions affect agents propensity to cooperate we are interested in studying spillovers that may involve cooperation in one domain such as a research joint venture and competition in another such as in a market 1 cooperation could weaken competition perhaps promoting collusion or market competition could reduce incentives for non market cooperation these behavioral spillovers could go in either direction they are distinct from another type of spillover through knowledge externalities that occur in research and development r d when the innovator cannot fully appropriate the gains to innovation leading potentially to a socially inefficient level of research debondt 1996 2 as discussed below behavioral spillovers have been shown in experiments to increase cooperation in otherwise competitive environments for example through establishing cooperative precedents a large body of theoretical research has focused on firms cooperating in research joint ventures and how this impacts competition in output markets for example cooper and ross 2009 examine the mechanism by which agreements to cooperate in one market can have negative effects on competition in other markets even in situations when these markets are not linked via costs or demand cabral 2000 shows that product market prices are affected by r d agreements between firms caloghirou ioannides and vonortas 2003 lambertini poddar and sasaki 2003 and poyago theotoky 2007 also discuss the impact of forming research joint ventures on product markets and cartel formation 3 empirical work using field data has provided creative indirect evidence on the collusive potential of research joint ventures by exploiting natural policy experiments although the extent of this evidence is limited goeree and helland 2010 for example show that research joint ventures facilitate collusion because they became less popular following an enforcement policy change leniency that made collusion less attractive policy experiments such as these are often required since systematic collusion often goes undetected by authorities duso roller and seldeslachts 2010 also examine the link between research joint ventures and collusion using data from the u s national cooperation research act that granted certain research joint ventures milder antitrust scrutiny they find that horizontal research joint ventures lead to more collusion than vertical joint ventures our work provides complementary and more direct evidence since in the laboratory we can observe the level and sustainability of tacit and explicit collusion and can therefore circumvent the measurement and endogeneity issues that are often prevalent in field data the specific research goals of this study are the following first we wish to examine if agents take advantage of available gains from cooperation in the presence of payoff uncertainties that arise from stochastic innovation success second we are interested in learning if a behavioral spillover of cooperation can lead to collusion in markets or whether competition in markets reduces non market cooperation these notions of cooperation concern contributions to joint r d projects or collusion in price setting and are defined independently of any communication opportunities therefore our third goal is to determine how this interaction between cooperation and competition is affected by the introduction of non market communication opportunities finally we will measure the externalities from r d cooperation to non innovators in the market

finders keepers forfeiture laws policing incentives and local budgets to encourage anti drug policing the federal government and many state governments have enacted laws that allowpoliceagencies tokeepasubstantial fractionofthe assets thattheyseizeindrugarrests weuserich new data on police seizures and local spending to explore the reactions of both governments and police to the incentives created by these policies we find that local governments offset police seizures by reducing their other allocations to police partially undermining the incentives laid out in statute and diverting the earmarked funds to other purposes police in turn respond to the real net incentives for seizures once local offsets are takenintoaccount byincreasingthedrugarrestrate heroinpricesalsoincrease suggestingthattheincreased emphasis on anti drug policing raises the supply costs of illicit drugs these findings highlight both the promise and pitfalls of using financial incentives to solve agency problems in a federal system both local agents and intervening governments have sophisticated responses to financial incentives and these responses must be taken into account in both designing effective policies and evaluating their consequences 2007 elsevier b v all rights reserved

extending the internationalization process model increases and decreases of mne commitment in emerging economies the internationalization process model suggests that firms internationalize by building positions in foreign markets and networks following iterative cycles of learning and changes in commitment however as subsidiaries evolve commitments may be decreased as well as increased a phenomenon that has rarely been studied moreover it remains an open question why strategic intentions at the outset of an investment project differ from the actual operations established we address these questions by extending the model and combining it with mintzberg and waters framework of strategy formation specifically we suggest that commitment decisions correspond to statements of intended strategy while network positions correspond to realized strategies the processes of learning opportunity creation and trust building triggered by commitment decisions are however moderated by institutional influences that lead to divergences between realized and intended strategies we test propositions derived from this framework on a survey data set of subsidiaries of multinational enterprises in hungary lithuania and poland and find that institutional voids and institutional uncertainty affect subsidiary strategy implementation but in opposing directions under high institutional uncertainty investors prefer low commitment but flexible modes that enable later commitment increases whereas institutional voids increase up front information search and adaptation costs that reduce the likelihood of early post entry adjustments our analysis reinforces the need for more differentiated theoretical analyses of how institutions affect business strategies over time

process standardization across intra and inter cultural relationships theory suggests that culture may hinder the ability to effectively standardize the process of relationship development strategies across intra and inter cultural relationships construct relationships between trust commitment conflict and satisfaction in manufacturer distributor relationships are examined intra i e within a single cultural type and inter culturally i e between different cultural types with a sample of distributors from canada chile mexico and the united states results support theoretical differences in the consequences of the trust commitment relationship between intra cultural and inter cultural relationships the results suggest process standardization based upon cultural type

absorptive capacity and connectedness why competing firms also adopt identical r d approaches abstract this paper explores the endogenous determination of r d appropriability through the firms choice of r d approaches whereas identical broad r d approaches connect firms with their r d environment and maximize absorptive capacities the opposite holds for idiosyncratic r d approaches our model shows that competing firms choose identical r d approaches in order to maximize knowledge flows between each other in essence this frees firms from the prisoner s dilemma of aggressive investment in r d our analysis contrasts with kamien and zang s 2000 kamien m zang i 2000 meet me halfway research joint ventures and absorptive capacity international journal of industrial organization 18 995 1012 finding that competing firms chose idiosyncratic r d approaches we demonstrate that their model also yields a nash equilibrium for broad identical r d approaches

cooperative and noncooperative r d in duopoly with spillovers erratum in our article published in this review volume 78 no 5 december 1988 pp 1133 37 we have shown that in the presence of sufficient spillovers of the r d benefits duopolists cooperating in r d but not in the output spend more on r d than noncooperating firms at both stages and also produce more output closest to the socially optimal level a second symmetric result is that for small spillovers duopolists cooperating neither in r d nor in output spend more on r d and produce more output than cooperative firms however this result has been obscured by an obvious inequality inversion and other typos implying a modification in the conclusions indeed in fn 13 on p 1135 one should have that x x iff

on the role of input and output spillovers when r d projects are risky abstract this paper analyzes the impact of input and output spillovers on the expected effective cost reductions in a two stage model of r d where all r d projects are risky it is shown that relative to the deterministic case output spillovers tend to reduce expected cost reductions whereas input spillovers tend to increase investment in r d and hence expected cost reductions in particular the relations between cost reductions in the presence of input and output spillovers known from deterministic models may be reversed under certain parameter constellations

the influence of parent control structure on parent conflict in vietnamese international joint ventures an organizational justice based contingency approach there has been significant interest in understanding how the distribution of parental control over international joint ventures ijv influences ijv outcomes e g parent conflict survival performance yet the accumulation of research on the relationship between control structure and ijv outcomes has been somewhat inconclusive and even contradictory we contribute to this research stream by developing an organizational justice based contingency model relating parental control structure to parent conflict we suggest that the level of conflict between ijv parents will depend on the consistencies between the control structure and parents contribution of proprietary resources and between control structure and the parents abilities to effectively monitor operations our analysis of vietnamese joint ventures provides some support for our model and suggests that the relationship between parent control structure and ijv outcomes is perhaps more complex than previously thought

the impact of legitimacy pressure and corporate profitability on green innovation evidence from china top 100 abstract green innovation is an important approach for achieving sustainable development most research on determinants of corporate green innovation has focused on either external or internal drivers combining institutional theory and resource based view the scientific value of this study lies in simultaneously exploring the influence of external legitimacy pressure and internal corporate profitability and their interaction on green innovation samples of the top 100 listed companies in china from 2008 to 2012 were used and the results demonstrated that legitimacy pressure from stakeholders has a significantly positive influence on both corporate green product innovation and process innovation the results also revealed that corporate profitability positively affects green product innovation while there was found to be no significant influence on green process innovation moreover corporate profitability positively moderates the relationship between legitimacy pressure and green product innovation the results show that not only the single factor of external legitimacy pressure and internal profitability but also their interaction affects corporate green innovation practices this offers an integrating perspective on how corporations can be more innovative in sustainability

internal equity financing and the performance of multinational subsidiaries in emerging economies we examine the internal equity financing of the multinational subsidiary which retains and reinvests its own earnings internal equity financing is a type of firm specific advantage fsa along with other traditional fsas in innovation research and development brands and management skills it also reflects subsidiary level financial management decision making here we test the contributions of internal equity financing and subsidiary level financial management decision making to subsidiary performance using original survey data from british multinational subsidiaries in six emerging countries in the south east asia region our first finding is that internal equity financing acts as an fsa to improve subsidiary performance our second finding is that over 90 of financing sources including capital investment by the parent firms in the british subsidiaries come from internal funding our third finding is that subsidiary level financial management decision making has a statistically significant positive impact on subsidiary performance our findings advance the theoretical empirical and managerial analysis of subsidiary performance in emerging economies

seeking commonalities or avoiding differences re conceptualizing distance and its effects on internationalization decisions past research established distance s key influence on internationalization however theoretical issues methodological challenges and inconsistent results hinder scholarship on why distance plays such an influential role to address these problems we draw from cognitive research on similarity comparisons to re conceptualize distance and test a model of internationalization decisions analyzing the verbal protocols of executives considering a series of internationalization opportunities we demonstrate that over and above objective distance indicators considerations that reduce distance commonalities and considerations that augment distance differences have distinct effects on decisions of where when and how to internationalize as such our study contributes new insights for understanding the nature and effects of distance across different dimensions of distance and internationalization decisions moreover internationalization theories have come to emphasize different theoretical rationales for explaining the influential role of distance on different decisions by integrating these rationales together with the notion that distance reducing commonalities and distance augmenting differences have distinct implications for internationalization decisions we introduce the notion that it is not only the addition of distance considerations that matters but also the directionality of such changes doing so our study points to new theoretical and methodological insights to help address prior criticisms and advance future research

managerial metric use in marketing decisions across 16 countries a cultural perspective research on metrics is consistently designated a priority by academics and practitioners however less is known about how culture and cross national differences can potentially impact metric use which is theoretically and managerially limiting this work develops a model that examines national and organizational cultural antecedents while controlling for the decision setting testing the model on data collected from 4384 managerial decisions from 1637 firms in 16 countries reveals that both levels of culture are associated with metric use but each has varying effects our results enable multinational executives to better understand and increase managerial metric use across different cultures and settings

theoretical justification of sampling choices in international marketing research key issues and guidelines for researchers sampling in the international environment needs to satisfy the same requirements as sampling in the domestic environment but there are additional issues to consider such as the need to balance within country representativeness with cross national comparability however most international marketing research studies fail to provide theoretical justification for their choice of sampling approach this is because research design theory and sampling theory have not been well integrated in the context of international research this paper seeks to fill the gap by developing a framework for determining a sampling approach in international studies the framework is based on an assessment of the way in which sampling affects the validity of research results and shows how different research objectives impact upon a the desired sampling method and b the desired sample characteristics the aim is to provide researchers with operational guidance in choosing a sampling approach that is theoretically appropriate to their particular research aims

who pays for public employee health costs abstract we analyze the incidence of public employee health benefits because these benefits are negotiated through the political process relevant labor market institutions deviate significantly from the competitive private sector benchmark empirically we find that roughly 15 percent of the cost of recent benefit growth was passed onto school district employees through reductions in wages and salaries strong teachers unions were associated with relatively strong linkages between benefit growth and growth in total compensation our analysis is consistent with the view that the costs of public workers benefits are difficult to monitor contributing to benefit oriented and often under funded compensation schemes

optimal asymmetric strategies in research joint ventures abstract this paper identifies an overlooked implication of models of research joint ventures initiated by d aspremont and jacquemin 1988 even though the aggregate r d cost of identical firms in a research joint venture would be lowest if they invested equally to reduce subsequent production costs nonetheless members may often enlarge their overall joint profit by making unequal investments such a strategy raises costs in the investment stage but may create more than offsetting benefits in the production stage since industry profits are larger there when the firms are of unequal size when the consideration leading to asymmetry prevails we find that in contrast to previous work a research joint venture can raise welfare even when there are no spillovers

ready to export the role of export readiness for superior export performance of small and medium sized enterprises drawing on the entrepreneurship perspective and the network based view on internationalisation this exploratory study contributes to our understanding of why some exporters succeed while others do not through an empirical examination of export readiness factors the paper provides an operationalisation of export readiness for small and medium sized enterprises smes based on a sample of 96 new zealand smes we find that export readiness is a complex construct involving finance trade and exchange and marketing the study provides evidence that internal export stimuli are important antecedents of export readiness while factors traditionally assumed to be critical to export success such as importing and pre export domestic expansion may not be prerequisites to being export ready finally the study examines the link between export readiness and subsequent initial export performance and finds a strong positive relationship our study contributes to the export literature by providing a deeper and more integrated understanding of the antecedents of export readiness in a small open economy smopec and its implications for subsequent export performance

r d collaboration networks in mixed oligopoly we develop a model of endogenous network formation in order to examine the incentives for r d collaboration in a mixed oligopoly our analysis reveals that the complete network where each firm collaborates with all others is uniquely stable when r d subsidies are not available in addition to the complete network the private partial and the private hub star networks are pareto efficient however the complete network becomes the unique pareto efficient network when r d is subsidized this result is in contrast with earlier contributions in private oligopoly where under strong market rivalry a conflict between stable and efficient networks is likely to occur it also highlights the role of a public firm as policy instrument in aligning individual incentives for collaboration with the objective of efficiency independently of whether r d subsidies are provided by the regulator

the aggregate effects of health insurance evidence from the introduction of medicare this paper investigates the effects of market wide changes in health insurance by examining the single largest change in health insurance coverage in american history the introduction of medicare in 1965 i estimate that the impact of medicare on hospital spending is over six times larger than what the evidence from individual level changes in health insurance would have predicted this disproportionately larger effect may arise if market wide changes in demand alter the incentives of hospitals to incur the fixed costs of entering the market or of adopting new practice styles i present some evidence of these types of effects a back of the envelope calculation based on the estimated impact of medicare suggests that the overall spread of health insurance between 1950 and 1990 may be able to explain about half of the increase in real per capita health spending over this time period

cooperative r d between vertically related firms with spillovers abstract this paper analyzes the effects of cooperative r d in two vertically related duopolies which are two final good manufacturers and two input suppliers with horizontal and vertical spillovers vertical r d cartels yield a larger social welfare than non cooperative r d and if the horizontal spillover rate between the input suppliers is not sufficiently high than horizontal r d cartels technological improvement is accelerated by forming vertical research joint ventures rjvs whether or not their member firms r d decisions are coordinated vertical rjv cartels yield the largest social welfare when the vertically related firms can coordinate their r d decisions and or share useful knowledge fully

international knowledge brokerage and returnees entrepreneurial decisions based on the knowledge brokerage literature and the international entrepreneurship literature we investigate whether returnees international knowledge transfer affects their entrepreneurial decisions and the extent to which this relationship is contingent on perceived supportive policies for returnee entrepreneurship and returnees difficulties with cross cultural readjustment in their home countries analyzing first hand survey data we find a positive relationship between international knowledge transfer and returnees decisions to become entrepreneurs this positive relationship is strengthened by the perception of the home country s supportive policies for returnee entrepreneurship but is weakened by returnees perceived difficulties in readjusting to the local norms and culture in their home countries

endogenous spillovers and the performance of research joint ventures we present a model of r d with endogenous spillovers and demonstrate that noncooperation can produce maximal spillovers the only other noncooperative outcome is minimal spillovers when noncooperation achieves maximal spillovers so does an rjv whereas minimal noncooperative spillovers imply partial but not necessarily maximal spillovers by an rjv partial rjv spillovers are chosen for anti competitive reasons and an rjv may also close a lab for anti competitive reasons the possibility of anti competitive outcomes is precluded in the existing literature on rjvs which focuses on symmetric outcomes our model predicts when anti competitive behaviour by an rjv arises

cooperative r d and vertical product differentiation abstract a partial equilibrium model with vertical product differentiation coumot competition and quality determined by r d expenses is analysed cooperative agreements on r d entail higher levels of r d quality output and welfare than at the non cooperative equilibrium under well denned conditions on spillover rates this confirms in a new setting a well known outcome of models with cost reducing r d further cooperation in r d allows a larger number of firms to operate in the industry than in the non cooperative case via a reduction in prices a new source of social gains from cooperative research is identified

country image and consumer based brand equity relationships and implications for international marketing this paper examines the relationships between consumers country level and product level images of a country and the equity they associate with a brand from that country using canonical correlation analysis results from mallintercept surveys conducted in an australian state capital city indicated that the consumer based equity of a brand was significantly associated with both the macro and micro images of the country of origin of the brand the relationship between these two sets of constructs was found to be positive as well as product category specific furthermore each consumer based brand equity dimension contributed differently to the relationship according to the product category while the contribution of both country image dimensions macro and micro was also product category specific results also showed that cars as a product category are more sensitive to country image than televisions these findings have direct and important implications for international marketers

all school finance equalizations are not created equal school finance equalization has probably affected american schools more than any other reform of the last 30 years understanding it is a prerequisite for making optimal social investments in human capital yet it is poorly understood in this paper i explain why it differs from conventional redistribution because it is based on property values which are endogenous to schools productivity taste for education and the school finance system itself i characterize equalization schemes and show why some level down and others level up schemes that strongly level down have unintended consequences even poor districts can end up worse off i also show how school finance equalization affects property prices private school attendance and student achievement

r d spillovers and information exchange abstract we show that the spillover of r d can be endogenised in a sense that even without spillovers firms have an incentive to exchange the r d information after the investment costs are sunk

limits to international entry mode learning in smes despite extensive research the literature is unclear about the circumstances under which a firm learns from its past foreign entry modes and how this experiential learning is related to future mode choices building on the internationalization process ip model and the idea that some experiential learning is location bound while other learning is non location bound we develop and test theory to explain how experiential learning about foreign operation modes and markets impact future mode choices in new foreign markets overall we argue that mode based experiential learning is limited through the repeated use of a specific operation mode firms develop routines and processes that are non location bound and can be replicated in new foreign markets leading to the use of this same mode type in new locations but when complemented by experiential learning about a target market region firms opt for operation modes with greater commitment in new foreign markets drawing on a sample of german smes and examining four different types of entry modes we find some support however we also identify a number of notable exceptions to our theory in this way we help provide unique new insights informing future ip model experiential learning and international entry mode research

strategic alliance based sourcing and market performance evidence from foreign firms operating in china although foreign multinational firms from the triad regions increasingly use mainland china as both a sourcing and a marketing location no study has directly examined the sourcing strategy performance linkage using resource complementarity and resource dependence theory we extend the sourcing literature and apply these perspectives to an important transitional economy china these two theoretical perspectives suggest that product and uncertainty factors moderate the relationship between strategic alliance based sourcing sa sourcing of major components and market performance we find that at low levels of product innovativeness and technological uncertainty the use of sa sourcing is positively related to market performance however the effects of product differentiation and demand uncertainty on the sourcing performance relationship are insignificant journal of international business studies 2005 36 187 208 doi 10 1057 palgrave jibs 8400120

cost reduction competition and industry performance in many markets firms compete over time by expending resources with the purpose of reducing their costs sometimes the cost reducing investments operate directly on costs in many instances they take the form of developing new products that deliver what customers need more cheaply therefore product development can have the same ultimate effect as direct cost reduction in fact if one thinks of the product as the services it delivers to the customer in the way that lancaster pioneered then product development often is just cost reduction

cooperative and noncooperative r d in duopoly with spillovers contrary to the usual assumption made in most oligopoly models relations among firms are seldom of a wholly cooperative or noncooperative type in many situations they compete in some fields while they cooperate in others an important example is the case of cooperative research efforts bringing fierce competitors together two types of agreement are observed first r d cooperation can take place at the so called precompetitive stage companies share basic information and efforts in the r d stage but remain rivals in the market place 1 a second type of agreement involves an extended collusion between partners creating common policies at the product level the usual justifications of this extension are the difficulties of protecting intellectual property the idea is then to allow partners who have achieved inventions together to also control together the processes and products which embody the results of their collaboration in order to recuperate jointly their r d investments 2 what could be expected from these types of agreement is a reduction in r d expenditures because of less wasteful duplication and a reduction of total production because of more reprinted from the american economic review 78 5 1133 1137 1988 center for operations research econometrics 1348 louvain la neuve belgium we are grateful to jean

incorporating cultural values for understanding the influence of perceived product creativity on intention to buy an examination in italy and the us extending our understanding of the effects of perceived product creativity this study contributes to the literature by empirically investigating the influence of cultural values on the relationship between the creativity dimensions of novelty and meaningfulness and intention to buy schwartz s values framework is employed to theorize cultural differences the results based upon 206 italian and 201 us consumers surveyed via a mall intercept approach indicate that novelty is a more important dimension of product creativity in the us i e a low resultant conservative high resultant self enhancement culture than in italy i e a high resultant conservatism low resultant self enhancement culture in influencing intention to buy and that meaningfulness is a more important dimension of creativity in italy than in the us in influencing intention to buy these results provide important standardization adaptation implications for international marketing academics and practitioners

concubinage or marriage informal and formal cooperations for innovation based on a sample of german inno innovating firms that contains information on formal and informal innovation cooperation between customers and suppliers we state that firms perceive informal cooperation as being more important than formal cooperation modes we then investigate the determinants of firms decisions to engage into the respective cooperation modes in line with previous empirical work we do not find much empirical evidence for the relevance of incoming spillovers in addition our results suggest that this finding holds as well for informal cooperations a firms ability to protect its proprietary innovations however seems to be a key determinant of formal as well as informal cooperations furthermore absorptive capacity and the organizational structure of in house r d play an important role another relevant driver of vertical cooperations are the innovation dynamics at the he industry level firms who operate an r d department and firms who are involved in costly r d projects tend to cooperate formally rather than informally

cops and crime abstract the violent crime control and law enforcement act of 1994 established the community oriented policing services cops program that provided grants to states and localities to pay up to 75 of the cost for new police hires for 3 years to date the cops program has awarded almost 5 billion in hiring grants paying for 64 000 new police officers we use annual data from 1990 through 2001 from 2074 cities with populations in excess of 10 000 to show that for each officer paid for by grant funds the size of the force expands by 0 70 officers the size of cops grants are correlated with population and crime rates but not the pre cops time trends in crime rates or the size of the police force this allows us to use the size of cops grants as an instrument for the size of the police force in regressions where crime is the outcome of interest these models indicate that police added to the force by cops generated statistically significant reductions in auto thefts burglaries robberies and aggravated assaults

an experimental analysis of dynamic incentives to share knowledge knowledge sharing arrangements are an important part of the innovation process as they help firms acquire technological capabilities shorten development time and spread risk and cost a question central to the study of knowledge sharing arrangements is the impact of competition on cooperation while cooperation has the benefit of avoiding duplication it may have an adverse effect on the competitive advantage of a leading firm hence firms face a difficult challenge during the innovation process while deciding which components of it if any to carry out in collaboration with other firms this paper reports the results of controlled laboratory experiments which identify how the decision to form research joint ventures changes with both relative progress during the r d process and the intensity of product market competition the design is based on a modified version of erkal and minehart optimal sharing strategies in dynamic games of research and development research paper 1038 university of melbourne department of economics 2008 the results indicate that if expected profits are such that the lagging firms always stay in the race cooperation unravels as firms move forward in the discovery process and as monopoly profits become more attractive these results are generally consistent with the theoretical predictions jel c91 l24 o30 d81

the incidence of medicare abstract the medicare program transfers nearly 300 billion annually from taxpayers to beneficiaries this paper considers the incidence of such transfers in the context of a life cycle model with uncertainty about future health care expenditures we find the distributional consequences of the medicare program are roughly neutral in dollar terms households living in high income neighborhoods pay more in taxes but they also receive more in benefits these dollar flows however ignore the insurance value of the medicare system given the incomplete insurance coverage of lower income elderly households prior to the medicare program the money metric benefits to lower income groups exceed the dollar flows suggesting that medicare redistributes more than a simple accounting exercise would suggest

farsighted r d networks we analyze the formation of bilateral r d collaborations in an oligopoly when each firm benefits from the research done by other firms it is connected to in contrast to myopic stability farsighted stability leads to r d networks consisting of two minimally connected components with the largest one comprising three quarters of firms

dynamic r d with spillovers competition vs cooperation abstract we investigate dynamic r d for process innovation in a cournot duopoly where firms may either undertake independent ventures or form a cartel for cost reducing r d investments by comparing the profit and welfare performances of the two settings in steady state we show that private and social incentives towards r d cooperation coincide for all admissible levels of the technological spillovers characterising innovative activity we also evaluate the whole history of the dynamic system along the transition to the steady state showing that the conflict between private and social incentives does not necessarily emerge

autonomy delegation to foreign subsidiaries an enabling mechanism for emerging market multinationals current theory on foreign subsidiary autonomy is insufficient to examine a situation where a multinational lacks experience to organize global operations and yet intends to compete extensively with established multinational enterprises mnes from advanced economies by building on theoretical perspectives developed for emerging market multinational enterprises emnes we advance the idea that foreign subsidiary autonomy is a strategic mechanism to overcome the emne s weaknesses in managing globally dispersed businesses and their home country disadvantages after foreign entry subsidiary autonomy delegation assists in performing the learning functions necessary for overcoming resource and capability voids as well as for distancing the subsidiary administratively from the parent s negative home country institutional heritage analyses of survey data collected from headquarter senior executives of 240 chinese mnes suggest that subsidiary autonomy delegation is higher among firms relying on foreign markets as a springboard to acquire strategic assets whose top managers at the headquarters perceive high domestic institutional constraints and which do not count on government assistance to expand internationally further we demonstrate that these relationships are strengthened with greater inward foreign direct investment cooperative experience and with the use of merger and acquisition entry modes these findings have important implications for theories on subsidiary autonomy

on additive spillovers and returns to scale in r d abstract this paper explores economically meaningful forms of cost functions for process research and development in the presence of imperfect appropriability of inventive output we propose as a central criterion to be satisfied by the knowledge production process that a given r d investment should always produce more cost reduction if devoted to one lab rather than two independent labs operated under natural spillovers with input spillovers this postulate is broadly satisfied however with output spillovers this is generally not the case for r d technologies having decreasing returns to scale we identify economically plausible restrictions on the size of spillovers and on the properties of the r d cost function so as to bring about compatibility with the above postulate some empirical evidence in support of both the criterion and of its theoretical implications is discussed

research note channel structure with knowledge spillovers we study two main questions in this paper 1 how do spillovers of knowledge created by manufacturers investments in process innovation affect channel structure and effort investment incentives 2 what are the interactions between organizational incentives to form joint ventures and strategic alliances with competitors and coordinate decisions vertically with downstream channel members we focus on situations where spillovers are involuntary firms innovative activities are nonoverlapping and firms benefit directly from the results of competitors innovations under these conditions we find that spillovers in process knowledge increase the likelihood of observing decentralized channel structures surprisingly decentralized manufacturers invest more in process innovation than perfectly coordinated manufacturers do when spillovers are large moreover in industries where large spillovers exist horizontal cooperation among manufacturers induces higher levels of process innovation investments than channel coordination does from a public policy perspective however the desirability of such cooperative arrangements among competitors depends on channel structure joint ventures among decentralized manufacturers are more likely to meet the regulators criteria of raising effort investments than cooperation among integrated manufacturers would be investment incentives are best provided when firms share their process knowledge and are buffered from subsequent price competition by independent retailers

hospital ownership and public medical spending the hospital market is served by firms that are private for profit private not for profit and government owned and operated i use a plausibly exogenous change in hospital financing that was intended to improve medical care for the poor to test three theories of organizational behavior i find that the critical difference between the three types of hospitals is caused by the soft budget constraint of government owned institutions the decision makers in private not for profit hospitals are just as responsive to financial incentives and are no more altruistic than their counterparts in profit maximizing facilities my final set of results suggests that the significant increase in public medical spending examined in this paper has not improved health outcomes for the indigent i introduction the hospital market is served by firms that are private for profit private not for profit and publicly owned and operated in this paper i examine how a hospital s type of ownership influences its response to profitable opportunities that are created by changes in government policy the policy change that i exploit was designed to improve the quality of medical care for lowincome individuals by significantly increasing hospitals financial incentives to treat them this program also substantially increased the revenues of those hospitals that had been serving a disproportionate share of the indigent i use this plausibly exogenous change in government policy to test three different theories of organizational behavior and then to assess the impact of hospital behavioral responses on health outcomes the response of organizations to changes in government policy will have an important impact on the consequences of these policies this is likely to be especially true in the medical sector in which the federal state and local governments contract directly

firm heterogeneity imitation and the incentives for cost reducing r d effort i develop and test a model of strategic r d investments where innovating and non innovating firms compete on the basis of their ability to reduce costs and imitate rivals i find that a larger proportion of non innovating rivals stimulates cost reducing investments and attenuates the disincentive effect of imitation by innovators on firm level r d key model properties are verified by estimating the first order condition for the optimal choice of r d using the 1994 carnegie mellon survey of u s industrial r d results also suggest that r d and size are simultaneously determined with r d being proportional to size as predicted by the theoretical model

mentoring across global boundaries an empirical examination of home and host country mentors on expatriate career outcomes there has long been an interest in the effects of mentors on protege career outcomes and with scholars now beginning to examine mentoring across national boundaries using survey information as well as company records for 299 expatriates 163 men 136 women in 10 countries we examined the impact of home and host country mentors upon expatriate effectiveness we found that having a host country mentor had a significant positive effect on the expatriate s organizational knowledge organizational knowledge sharing job performance promotability and perceptions of teamwork having a home country mentor had a significant positive effect only on organizational knowledge job performance and promotability surprisingly our results revealed that having a home country mentor had a significant but negative effect on the expatriate s organization identification and job satisfaction contrary to the literature neither type of mentoring had a significant effect on job tension implications for practice as well as future research are detailed

customer involvement and service firm internationalization performance an integrative framework to overcome the costs of doing business abroad researchers have suggested either legitimacy or efficiency based solutions however both types of solutions still treat host country customers as external to the theory we highlight the role of customers in the international professional business service setting and argue that customer involvement is positively related to the perceived internationalization performance of multinational corporations mncs mncs with managers who perceive higher legitimacy pressures and greater needs for local knowledge tend to undertake greater efforts to build customer involvement furthermore we develop a configuration framework between perceived strategic needs and mncs capabilities specifically mncs that match relational capability with legitimacy needs and absorptive capacity with knowledge needs are more likely to engage in customer involvement our survey of 175 chinese mncs provides evidence that customer involvement is positively related to perceived internationalization performance when mncs relational capabilities are stronger the positive relationship between legitimacy pressure and customer involvement increases by contrast mncs with greater perceived market ambiguity improve customer involvement only when they have stronger absorptive capacity we conclude that mncs may simultaneously reduce legitimacy and efficiency costs through customer involvement after considering the fit between perceived environmental pressures and firm capabilities

cooperative r d under uncertainty with free entry abstract this paper analyzes the effects of cooperative r d arrangements in a model with stochastic r d and output spillovers our main innovation is to allow for free entry in both the r d race and product market moreover in contrast with the literature we assume that cooperative r d arrangements do not have to include all the firms in the industry we show that sharing of research outcomes is a necessary condition for the profitability of cooperative r d arrangements with free entry the profitability of rjv cartels depends on their size subsidies may be desirable in cases of larger rjvs since they are the ones which are less likely to be profitable

comparing cournot and bertrand equilibria in a differentiated duopoly with product r d abstract this paper compares bertrand and cournot equilibria in a differentiated duopoly with substitute goods and product r d i find that r d expenditure prices and firms net profits are always higher under quantity competition than under price competition furthermore output consumer surplus and total welfare are higher in the bertrand equilibrium than in the cournot equilibrium if either r d spillovers are weak or products are sufficiently differentiated if r d spillovers are strong and products are not too differentiated then output consumer surplus and total welfare are lower in the bertrand case than in the cournot case thus a key finding of the paper is that there are circumstances where quantity competition can be more beneficial than price competition both for consumers and for firms

on the dynamic efficiency of bertrand and cournot equilibria abstract this paper compares bertrand and cournot equilibria in a differentiated duopoly with r d research and development competition it shows that cournot competition induces more r d effort than bertrand competition however the price is lower and output is larger in bertrand than in cournot competition furthermore the bertrand equilibrium is more efficient than the cournot equilibrium if either r d productivity is low or spillovers are weak or products are very different if r d productivity is high spillovers are strong and goods are close substitutes then the bertrand equilibrium islessefficient than the cournot equilibrium journal of economic literatureclassification number l13

home country bias in product evaluation the complementary roles of economic and socio psychological motives consumers often are positively biased in their evaluations of domestic products vs foreign alternatives this study establishes economic and socio psychological motives for this home country bias building on social identity theory this paper shows that home country bias is in part driven by a need for self enhancement this influence is stronger for consumers who identify more strongly with their own country and is complementary to the effect of consumer ethnocentrism which provides an economic motivation for home country bias the framework is supported in empirical studies conducted in the netherlands and in the usa

dynamic r d with spillovers a comment cellini and lambertini 2009 dynamic r d with spillovers competition vs cooperation j econ dyn control 33 568 582 study a dynamic r d game with spillovers this comment demonstrates that contrary to what is claimed in their paper the game is not state redundant and the open loop nash equilibrium is not subgame perfect

do federal grants boost school spending evidence from title i abstract one of the federal government s main elementary and secondary education programs is title i which allocates money for compensatory education to school districts based on child poverty i use sharp changes in per pupil grant amounts surrounding the release of decennial census data to identify effects of title i on state and local education revenue and how much the program ultimately increases spending by recipient school districts i find that state and local revenue efforts initially are unaffected by title i changes but that local governments substantially and significantly crowd out changes in title i within in a 3 year period

inter firm complementarities in r d a re examination of the relative performance of joint ventures we compare duopoly outcomes between two alternative modes of research and development rd the reverse holds for high spillovers when rjvs yield higher technological improvement they also yield higher industry profit and social welfare

trans specialization understanding in international technology alliances the influence of cultural distance in the information age the firm s performance hinges on combining partners specialist knowledge to achieve value co creation combining knowledge from different specialties could be a costly process in the international technology alliances itas context we argue that the combination of different specializations requires the development of trans specialization understanding tsu instead of the internalization of partners specialist knowledge this article examines the extent to which inter firm governance in itas shapes tsu and whether the development of tsu is endangered by cultural distance we hypothesize that relational governance product modularity and cultural distance influence tsu development which in turn influences firm performance we collected data from 110 non equity itas between software and hardware firms participating in the mobile device sector we analyzed the data using partial least squares path modeling our findings suggest that tsu largely depends on product modularity and relational governance in alliances however while cultural distance negatively moderates the path from relational governance to tsu it has no effect on the relationship between product modularity and tsu based on this we conclude that product modularity can substitute for relational governance when strong relational norms are not well developed in international alliances thus cultural distance does not invariably amount to a liability in itas

on environmental regulation of oligopoly markets emission versus performance standards by specializing montero s j environ econ manag 44 23 44 2002 model of environmental regulation under cournot competition to an oligopoly with linear demand and quadratic abatement costs we extend his comparison of firms incentives to invest in r d under emission and performance standards by solving for a closed form solution of the underlying two stage game this allows for a full comparison of the two instruments in terms of their resulting propensity for r d and equilibrium industry output in addition we incorporate an equilibrium welfare analysis finally we investigate a three stage game wherein a welfare maximizing regulator sets a socially optimal emission cap under each policy instrument for the latter game while closed form solutions for the subgame perfect equilibrium are not possible we establish numerically that the resulting welfare is always larger under a performance standard

public policy towards r d in oligopolistic industries the importance of determining optimal policy towards r d cannot be exaggerated given the worldwide interest in fostering r d and given the significant differences between european and u s policies towards interfirm cooperation on r d moreover the problem is an inherently difficult one because of the complex nature of the r d process since r d is a component of fixed costs industries where it is important tend to be concentrated hence r d policy must go hand in hand with competition policy at the same time r d is like any form of investment in that it precedes the production stage hence issues of time consistency and strategic commitment inevitably arise in considering the choice of r d policy finally r d by one firm typically leads to spillovers wbich benefit other firms so that r d exhibits many of the character department of economics university college dublin belfield dublin 4 ireiatid for helpful discussions and comments we are grateful to two anonymous referees to pedro bartos steve martin massimo motta and damien neven and to participants at seminars in birmingham st andrew s and warwick at a cepr workshop on r d spillovers in lausanne at erwit 94 in caslel gandolfo eea 95 in prague the 1996 conference on industrial economics at universidad carlos iii de madrid and a meeting of the dublin economics workshop this paper was produced as part of the international economic performance programme of the centre for economic performance london school of economics supported by the u k esrc an earlier version was circulated as cepr discussion paper no 1243 see alexis jacquemin 1988 and stephen martin 1996 istics of a public good albeit one that is mostly privately produced tbe degree to which such spillovers occur and can be internalized is another crucial influence on the desirable pattem of intervention

cosmopolitan consumers as a target group for segmentation for international companies the literature recommends directing segmentation efforts at customer characteristics rather than country characteristics consumers degree of cosmopolitan orientation has been suggested as a powerful segmentation base as this characteristic is expected to drive consumers tastes and preferences to advance research on this segmentation base this article offers a conceptualization of the consumer cosmopolitanism construct by 1 delineating its conceptual domain 2 highlighting its key dimensions namely open mindedness diversity appreciation and consumption transcending borders and 3 examining its links with theoretically relevant variables specifically consumer ethnocentrism and global consumption orientation based on the aforementioned conceptualization a consumer research specific and psychometrically sound measurement instrument the c cosmo scale is subsequently developed and tested in a series of complementary studies finally empirically based insights into the characteristics of cosmopolitan consumers are offered by 1 profiling them on consumption relevant variables innovativeness risk aversion susceptibility to normative influence consumer ethnocentrism and demographic characteristics 2 examining the link between consumer cosmopolitanism and willingness to buy foreign products and 3 developing an empirically based typology of cosmopolitan local consumers using a cluster analysis approach from a managerial perspective findings suggest that the identification and subsequent targeting of cosmopolitan consumers may well represent an appropriate strategy for internationally active companies

unequal treatment of identical agents in cournot equilibrium oligopoly models where prior actions by firms affect subsequent marginal costs have been useful in illuminating policy debates in areas such as antitrust regulation environmental protection and international competition we discuss properties of such models when a cournot equilibrium occurs at the second stage aggregate production costs strictly decline with no change in gross revenue or gross consumer surplus if the prior actions strictly increase the variance of marginal costs without changing the marginal cost sum therefore unless the cost of inducing second stage asymmetry more than offsets this reduction in production costs the private and social optima are asymmetric

endogenous r d symmetry in linear duopoly with one way spillovers a duopoly model of cost reducing r d cournot competition is extended to study the endogenous timing of r d strategic investment under the assumption that r d spillovers only flow from the r d leader to the follower sequential and simultaneous play at the r d stage are compared in order to assess the role of technological externalities in stimulating or attenuating endogenous firm asymmetry the only timing structure of the r d stage sustainable as subgame perfect nash equilibrium involves simultaneous play and zero spillovers

the role of past performance in export ventures a short term reactive approach this paper employs organizational learning theory to examine the short term effect of past export performance and internal management and external market forces on marketing strategy adaptation and current export performance results from a survey of over 500 export managers indicate that current period performance improvement in terms of performance achievement export intensity and performance satisfaction in the current year is influenced by the firm s commitment to exporting further the authors found that while performance satisfaction feeds performance improvement in the following year both the previous year s export intensity and export performance achievement produce a negative impact on current period performance improvement more importantly the level of development in the export market facilitates marketing strategy adaptation in the short term as does export intensity in the previous year however satisfaction with previous year performance negatively influences the degree of distribution adaptation implications for international business researchers and practitioners are also discussed

noncooperative versus cooperative r d with endogenous spillover rates this paper deals with a general version of a two stage model of r d and product market competition we provide a thorough generalization of previous results on the comparative performance of noncooperative and cooperative r d dispensing in particular with ex post firm symmetry and linear demand assumptions we also characterize the structure of profit maximizing r d cartels where firms competing in a product market jointly decide r d expenditure as well as internal spillover levels we establish the firms would essentially always prefer extremal spillovers and within the context of a standard specification derive conditions for the optimality of minimal spillover

corrupting learning evidence from missing federal education funds in brazil abstract this paper examines if money matters in education by looking at whether missing resources due to corruption affect student outcomes we use data from the auditing of brazil s local governments to construct objective measures of corruption involving educational block grants transferred from the central government to municipalities using variation in the incidence of corruption across municipalities and controlling for student school and municipal characteristics we find a significant negative association between corruption and the school performance of primary school students students residing in municipalities where corruption in education was detected score 0 35 standard deviations less on standardized tests and have significantly higher dropout and failure rates using a rich dataset of school infrastructure and teacher and principal questionnaires we also find that school inputs such as computer labs teaching supplies and teacher training are reduced in the presence of corruption overall our findings suggest that in environments where basic schooling resources are lacking money does matter for student achievement

cooperative and noncooperative r d in duopoly with spillovers comment claude d aspremont and alexis jacquemin 1988 employ a simple yet elegant symmetric duopoly model of r d and spillovers to compare several equilibrium concepts these concepts include 1 the two stage noncooperative solution 2 the two stage mixed game 3 the two stage fully cooperative solution 2 and 4 the social planner s optimum 3 for each of the cases stated above they computed the equilibrium levels of output q q1 q2 and r d xl x2 x and the required second order conditions they report i for large spillovers i e b 0 5 x x x and q q q q and ii for small spillovers i e 3 x 2x x and q q q q where x denotes a firm s r d level q denotes total industry output denotes the social optimum denotes the fully cooperative model the noncooperative two stage case and the mixed game 3 is the spillover parameter here we show that comparing the pure cooperative and the pure noncooperative solutions as defined by d aspremont and jacquemin is only meaningful when the noncooperative solution is stable that is when spillovers are not too small we find that for very small spillovers in our example this occurs when 3 0 17 the d aspremont jacquemin observation holds because the noncooperative model is unstable the importance of this result rests on the fact that even though the output reaction functions cross correctly when 3 0 17 the r d reaction functions do not when 0 17 0 41 stability obtains but r d levels are higher in the noncooperative case than the fully cooperative one for large spillovers the d aspremont jacquemin result is confirmed moreover we find that the introduction of spillovers in the case of the noncooperative model tends to promote stability in the case of the cooperative model however as the level of spillovers is increased an equilibrium ceases to exist

modelling imperfectly appropriable r d via spillovers abstract we provide an extensive comparison of the well known r d models of d aspremont jacquemin and kamien muller zang exposing full or partial conflict in key conclusions and policy prescriptions using a mix of formal and or intuitive criteria we argue that the first model is of questionable validity for large spillover values the latter being characterized by jointly increasing returns to scale in the r d process an argument leading to equivalence between the two r d processes but not to agreement on some key conclusions is exposited in conclusion the models emerge as fundamentally different although a unilateral shift in the cost function of the first leads to agreement in all equilibrium outcomes

equilibrium and optimal size of a research joint venture in an oligopoly with spillovers this paper analyzes a simple oligopoly model with information spillovers firms spend on r d to affect their costs of production the main finding is that depending on the magnitude of the spillover the market may not provide enough incentives for the optimum degree of cooperation to take place it is shown that the equilibrium size of a research joint venture is usually less than the optimum size which requires all firms to participate in the research joint venture the policy implications of this result are that there should be encouragement for firms competing in high technology industries to form industry wide cooperative agreements copyright 1995 by blackwell publishing ltd

r d induced industry polarization and shake outs abstract we consider the standard two stage game of r d and cournot competition with ex ante identical firms but depart from the literature in assuming that r d is characterized by mildly instead of strongly decreasing returns to scale we establish that only extreme r d levels are possible at equilibrium and that for a broad range of parameters equilibria are asymmetric in r d levels possibly leading one firm to endogenously exit this provides a simple link between returns to scale in r d and industry polarization including shake outs a novelty is that exit may be triggered by positive opportunities in a strategic setting given the original nature of our r d equilibrium a complete welfare analysis is conducted including a possible role for r d subsidies

global delivery models the role of talent speed and time zones in the global outsourcing industry global delivery models gdms are transforming the global it and business process outsourcing industry gdms are a new form of client specific investment promoting service integration with clients by combining client proximity with time zone spread for 24 7 service operations we investigate antecedents and contingencies of setting up gdm structures based on comprehensive data we show that providers are likely to establish gdm location configurations when clients value access to globally distributed talent and speed of service delivery in particular when services are highly commoditized findings imply that coordination across time zones increasingly affects international operations in business to business and born global industries

uncertainty spillovers and cooperative r d abstract this paper extends the literature on cooperative r d in an oligopoly with spillovers the model has three new features it introduces uncertainty focuses on spillover of innovation instead of effort spillover and offers a new definition of the research joint venture rjv the rjv is an arrangement to coordinate r d efforts and also to share the innovation firms form an rjv only if the innovation raises flow industry profit but independently of the speed of spillovers and the degree of uncertainty the model is robust when we allow for licensing the single lab endogenous spillovers and r d effort spillovers

networks of knowledge among unionized firms we develop a model of strategic networks in order to analyze how trade unions will affect the stability of r d networks through which knowledge is transmitted in an oligopolistic industry whenever firms settle wages the partially connected network is likely to emerge in the long run if and only if knowledge spillovers are large enough however when unions settle wages the complete network is the unique stable network in other words the stronger the union bargaining power is the more symmetric stable r d networks will be in terms of network efficiency the partially connected network when firms settle wages does not pareto dominate the complete network when unions settle wages and vice versa