knowledge proximity and r d exodus abstract we explore not only how technological leaders and laggards react to agglomeration but within an agglomeration we look at how the relative presence of other leaders laggards and foreign firms affects these firms existing literature argues that technological leaders experience net knowledge outflows and are therefore losers in agglomerations however we do not know if they avoid locations with laggards more so than locations with leaders or vice versa thus we examine how the relative presence of each affects leaders location decisions for technologically lagging firms we argue they will prefer locations with leaders over locations with laggards we further posit that an increasing presence of foreign firms will have a particularly detrimental effect on technologically leading domestic firms as these lose out in the contest for talent contextualized in an emerging market with weak intellectual property rights protection we examine whether these concerns about knowledge spillovers and competition for talent prompt firms to close their r d facilities or remain open using 5798 observations of r d laboratories in india during 2003 2011 we find that while technologically leading firms are more likely to close their r d facilities as the presence of other domestic labs increases laggards are less likely to do so these findings suggest concerns over knowledge spillovers are present especially on the part of technologically leading firms moreover leaders are more concerned by the presence of other leaders technologically lagging firms by contrast are less likely to close r d facilities in the face of these concerns and will prefer staying near leaders over laggards finally we find evidence of foreign firms crowding out domestic technological leaders but not laggards in the competition for talent

new blood as an elixir of youth effects of human capital tenure on the explorative capability of aging firms the relationship between firm age and innovation has been an enduring topic of interest we contribute to this research by studying how the effect of firm age on the quality of explorative and exploitative innovations is affected by the firm specific and industry tenure of the talent resources employees that the firm utilizes we start with the baseline predictions that firm age is related to the development of better exploitative innovations and worse explorative innovations however the tenure of employees intervenes in these relationships by way of bringing in new knowledge mental models and beliefs we predict that longer firm specific and industry tenure of employees enhances the positive effect of firm age on the quality of exploitative innovations while amplifying the negative effect of firm age on the quality of explorative innovations in addition for both the baseline and the moderating effect we also formulate a prediction comparing the quality of explorative innovations with those of

choosing price or quantity the role of delegation and network externalities we consider a differentiated duopoly and endogenise the firm choice of the strategy variable price or quantity to play on the product market in the presence of network externalities we model this choice by assuming both competition between entrepreneurial owner managed firms and competition between managerial firms in which market decisions are delegated from owners to revenue concerned managers while network externalities are shown not to alter the symmetric equilibrium quantity choice arising in the no delegation case sufficiently strong network effects allow us to eliminate the multiplicity of equilibria under delegation and lead to a unique equilibrium in which both firms choose price

welfare improving vertical separation with network externality considering the interplay between network externalities and the degree of product substitutability in a vertical structure we compare the outcomes of vertical integration and vertical separation in contrast to previous results we show that when both products are sufficiently close substitutes there is a threshold level of the network externality parameter beyond which vertical separation is more efficient than vertical integration this is due to the internalization of the network externality by a multiproduct monopolist which in the balance between the extensive and intensive margin leads to higher output prices

incentive incompatibility and starting point bias in iterative valuation questions we test for incentive incompatibility and starting point bias to describe the effects of iterative valuation questions on willingness to pay we compare double triple and multiplebounded models with data from two surveys with similar designs of the valuation questions we find that incentive incompatibility is present in both sets of data and starting point bias is present in one the efficiency of the willingness to pay estimate is improved in only one set of data the potential loss from using iterative questions without controlling for both incentive incompatibility and starting point bias is biased willingness topay estimates

sources procedures and microeconomic effects of innovation fabio arcangeli paul david frank engelman christopher freeman massimo moggi richard nelson luigi orsenigo nathan rosenberg michele salvati g n von tunzelman two anonymous referees and the participants at the meeting of the committee on distribution growth and technical progress of the italian national research council cnr rome november 16 1985 have helped with various redraftings a particularly grateful acknowledgment is for the insightful and patient help of moses abramovitz this work has been undertaken at the science policy research unit spru university of sussex as part of the research program of the designated research centre sponsored by the economic and social research council esrc earlier support to the research that led to this paper by the italian national research council cnr is also gratefully acknowledged the statistical research has been undertaken with the assistance of stephano brioschi ilaria fornari and giovannu prennushi

tacitness learning and international expansion a study of foreign direct investment in a knowledge intensive industry this paper examines the impact of knowledge tacitness on a firm s propensity to establish plants in foreign rather than domestic locations our predictions build on knowledge based internalization and evolutionary theories of foreign direct investment we argue that the tacitness of technology has an inverted u effect on the propensity to undertake foreign investment we also expect that as a firm learns about a technology it will become more likely to make foreign investments we examine two forms of learning that which accumulates as a function of the number of plants previously built by the firm transfer based learning and that which accumulates as a function of time since the firm started using a technology time based learning we investigate empirical effects in a sample of investments in the memory segment of the semiconductor industry our predictions about the curvilinear effect of tacitness are supported the results also suggest that learning is a matter of taking time to become acquainted with the use of the technology and of gaining experience through successive foreign plant investments the study adds to the understanding of the effects of knowledge on corporate expansion

common marketing agency as a device for facilitating collusion in a variety of markets firms voluntarily and independently delegate control over certain aspects of marketing to common agents in this article we present an explicit model of agency delegation where firms noncooperatively select agents name output prices and choose compensation schemes we exhibit an equilibrium in which all strategic variables not merely the marketing choices delegated to agents but prices as well are selected perfectly cooperatively this cooperative equilibrium is very simple and attractive each firm sets the collusive output price and employs a commission scheme to compensate the agent although each

reply to a comment on three reasons to use annual payments in contingent valuation abstract whitehead 2017 suggests the contingent valuation cv data from 3 egan et al 2015b lacks theoretical validity and has a fat tails problem while also questioning our conclusion that cv surveys using annual payments produce willingness to pay wtp estimates that better match consumer surplus estimates from a travel cost model in this reply we use likelihood ratio tests to show that our cv data is theoretically valid we use the turnbull and kristrom distribution free estimators to show that our cv data generate economically significant wtp estimates with small standard errors finally we apply the sensitivity analyses from our original paper to whitehead s results these sensitivity analyses overwhelmingly support our original conclusion in favor of using annual payments in cv surveys

focusing firm evolution the impact of information infrastructure on market entry by u s telecommunications companies 1984 1998 organization structure acts as a lens on the environment gathering information and shaping its flow through a firm to inform managers choices this shaping of information flow happens through an organization s operating units which selectively process information from the environment and through the links between them which pass information between units we explore the relationship between this information infrastructure and firm strategy using structure and service information from the eight largest telephone service providers in the united states from 1984 to 1998 we find that firms with more units that scan areas of opportunity are more likely to enter a market while firms with more units that scan nonfocal areas are less likely to enter the market we also find that personnel links between units and the corporate level of the firm often constrain entry to new markets by dampening a unit s appetite for risk personnel links between operating units on the other hand can make a firm more likely to enter new markets particularly when the cooperating units combine different sets of information thus a firm s information infrastructure plays a dual role in shaping firm evolution leading toward some paths and away from others

letting rivals come close or warding them off the effects of substitution threat on imitation deterrence a resource based theory postulate is that firms must defend their resources against imitation to sustain competitive advantage however by deterring imitation firms may induce rivals to create su

innovation and industry evolution the theoretical literature on innovation has been concerned with a single innovation produced by a number of identical agents by contrast we consider a market in which one firm is the current incumbent while the remaining firms are challengers moreover we consider a sequence of innovations so that success does not imply that the successful firm reaps monopoly profits forever after but only until the next better innovation is developed we begin with a fully optimizing behavioral model and derive the equivalent of the schumpeterian process of creative destruction that is a firm enjoys temporary monopoly power but is soon overthrown by a more inventive challenger the essential point to grasp is that in dealing with capitalism we are dealing with an evolutionary process the fundamental impulse that sets and keeps the capitalist engine in motion comes from the new consumers goods the new methods of production or transportation the new markets the new forms of industrial organization that capitalist enterprise creates schumpeter 1942 pp 82 83

keep searching and you ll find what do we know about variety creation through firms search activities for innovation this article critically reviews and synthesizes the contributions found in theoretical and empirical studies of firm level innovation search processes it explores the advantages and disadvantages of local and non local search discusses organizational responses and identifies potential exogenous triggers for different kinds of search it argues that the initial focus on local search was a consequence in part of the attention in evolutionary economics to path dependent behavior but that as localized behavior was increasingly accepted as the standard mode studies began to question whether local search was the best solution in all cases more recently the literature has focused on the trade offs being created by firms having to balance local and non local search we account also for the apparent variety paradox in the stylized fact that organizations within the same industry tend to follow different search strategies but end up with very similar technological profiles in fast growing technologies the article concludes by highlighting what we have learnt from the literature and suggesting some new avenues for research

incumbent entry into new market niches the role of experience and managerial choice in the creation of dynamic capabilities increasingly technological innovation creates markets for new products and services to survive firms must respond to these new markets how do firms develop the capabilities necessary to succeed in such changing conditions some suggest that experience with previous entry builds such capabilities others suggest that capabilities arise from experience producing and selling to existing markets the role of managers is also debated some argue that experience with existing markets causes managers to miss entry opportunities others argue that managers enter new markets when their firm possesses the experience needed to compete effectively in this paper we explore these issues by investigating entry patterns in the disk drive industry we investigate the effect of experience in existing markets and experience with previous market entry we find that experience in previous markets increased the probability that a firm would enter a new market we show that this experience had greater value if the firm entered the new market we infer that managers chose to enter these markets to obtain this increase in value

household willingness to pay for green electricity in urban and peri urban tigray northern ethiopia determinants and welfare effects abstract this paper set out to estimate household willingness to pay for green electric services and welfare gains attributed to such schemes for this purpose contingent valuation survey was conducted on 300 urban and peri urban households in northern ethiopia a bivariate probit model was used to elicit willingness to pay and analyze determinants of household willingness to pay on the other hand welfare gains were analyzed using consumer and producer surpluses the mean willingness to pay was estimated to be birr 12 5 0 66 usd per month per household for five years on top of monthly electricity bill among others income played positive role on willingness to pay while difference in willingness to pay behavior was observed between male and female headed households in addition distance to wood and charcoal alternative energy markets played encouraging role for willingness to pay results from the welfare analysis show that there is significant societal gain to be made both in terms of surplus for households and producers government if the previously untapped green electricity service was implemented the revenue producer surplus for the state would be instrumental in contributing to the state s endeavor to generate a much needed capital for investment in and expansion of renewable energy

a failure inducement model of research and development expenditure abstract empirical evidence for the schumpeterian suggestion of a positive relationship between profitability and innovative effort is slim in fact the opposite is often suggested an alternative failure inducement hypothesis argues that firms make innovative efforts when performance falls below a minimum threshold resulting in a negative relationship between profitability and r d expenditures data on r d expenditures in italian industry in the early 1980s a period of severe economic crisis show that both hypotheses are relevant for firms whose profits are well above or well below average respectively

how much are people willing to pay for silence a contingent valuation study despite its major importance in the urban environment the problem of noise has received little attention from environmental economists in this paper the economic value of a noise reduction programme is evaluated the chosen technique is contingent valuation using the recently proposed one and one half bound question format this new question format reduces the potential for response bias in multiple bound formats such as the double bound model while maintaining much of its efficiency through the estimations it is found that urban residents generally value noise negatively that is households are willing to pay for a noise reduction in particular it is found that households are willing to pay approximately four euros per decibel per year a further finding is that interviewees show scope sensitivity that is households display a different willingness to pay for different degrees of noise reduction most are willing to pay more for larger decreases in the level of disturbance from noise

vertical restraints and producers competition this paper examines the rationale for vertical restraints it shows that there are important circumstances under which these restrictions have significant anti competitive effects the paper focuses on the consequences of exclusive territorial arrangements among the retailers of two products which are imperfect substitutes such arrangements are shown to increase consumer prices under plausible conditions the increase in consumer prices is sufficiently large to more than offset the deleterious effects from double marginalization resulting from reduced competition among retailers the imposition of exclusivity provisions is may be part of a nash equilibrium among producers these results hold whether there are or are not franchise fees this abstract was borrowed from another version of this item this abstract was borrowed from another version of this item this abstract was borrowed from another version of this item this abstract was borrowed from another version of this item this abstract was borrowed from another version of this item

the multifaceted nature of exploration and exploitation value of supply demand and spatial search for innovation in this paper exploration and exploitation are conceptualized in terms of a nonlocal local search continuum in three dimensional supply demand and geographic space using cross sectional data from a wide range of manufacturing industries we develop and validate an operational measure of the exploration exploitation concept in line with theory based arguments our analysis suggests that the value of supply side demand side and spatial exploration and exploitation is contingent on the environment while boundary spanning supply side search is found to be positively associated with innovation in more dynamic environments typical of the entrepreneurial regime phase of technology evolution such exploration appears to hurt innovation in less dynamic environments in a reverse fashion while boundary spanning demand side search is found to be favorably associated with innovation in less dynamic environments it appears to harm innovation in a more dynamic context interestingly spatial boundary spanning search seems to contribute to innovation in more as well as less dynamic environments with the caveat that the substantive findings of this study are based on cross sectional data we discuss the implications of our work and future research directions

valuing health care using willingness to pay a comparison of the payment card and dichotomous choice methods this paper compares willingness to pay wtp estimates generated from the dichotomous choice dc and payment card pc approaches in a split sample wtp experiment concerned with allocating scarce health care resources across three health care interventions the dc approach is shown consistently to generate larger welfare estimates than the pc observed difference between pc and dc experiments cannot be explained by the inclusion of non demanders or methods of statistical analysis but may be partly explained by yea saying no evidence of range bias or mid point bias was found with pc responses data were also collected on respondents ordinal rankings of the three interventions and person trade offs ptos neither of these approaches converged with wtp future work must address the decision heuristics individuals employ when responding to valuation experiments

intimidating competitors endogenous vertical integration and downstream investment in successive oligopoly this paper examines the interplay of endogenous vertical integration and cost reducing downstream investment in successive oligopoly analyzing a linear cournot model we establish the following key results i vertical integration increases own investment and decreases competitor investment intimidation effect ii asymmetric integration is a non degenerate equilibrium outcome iii compared to a benchmark model without investment complete vertical separation is a less likely outcome we argue that these findings generalize beyond the linear cournot model under reasonable assumptions

your network or mine the economics of routing rules in many markets including payment cards and telecommunications service providers operate networks that support customer transactions with each other when the two sides of a transaction belong to more than one network in common the question arises as to which network will carry the transaction we show that the answer depends on a combination of who has the formal authority to choose and the parties network subscription decisions our central finding is that granting formal authority to one side of the market can increase the extent to which transactions run over the network preferred by the other side of the market we also characterize competing networks equilibrium choices of routing rules and prices

are french consumers ready to pay a premium for eco labeled seafood products a contingent valuation estimation with heterogeneous anchoring could the future french eco label for fresh seafood products find its place in the french market this study employs a contingent valuation method to estimate french consumers willingness to pay wtp for eco labeled fresh seafood products we exploit original data from a survey carried out in 2010 where 626 participants responded to a double bounded dichotomous choice model through an ascending or descending bid system controlling for shift and anchoring effects in random effect probit models we significantly improve estimation of wtp and its determinants for the three species studied monkfish lobster sole in particular when using heterogeneous anchoring we show that wtp is positively correlated to respondents income and also to their environmental concern to living alone to living far from the coast and to trusting ngos or public institutions more than producer organizations to implement an eco label we also show that the mean price premiums do not differ between species finally on average the maximum premium consumers accepted to pay is approximately 10 of the product price

exploring preference anomalies in double bounded contingent valuation double bounded dichotomous choice dbdc contingent valuation offers increased efficiency of willingness to pay wtp estimates compared with the single bounded format however evidence suggests dbdc generates anomalous respondent behaviour this paper provides the first investigation and explanation of these anomalies in health results suggest the incentives for truthful preference revelation are altered in the presence of a follow up question this result is found using both regression techniques and analysis of raw responses although findings suggest very certain respondents exhibit less anomalous behaviour inconsistencies remain across bounds the results of this study question the use of iterative valuation formats

customer power strategic investment and the failure of leading firms why might firms be regarded as astutely managed at one point yet subsequently lose their positions of industry leadership when faced with technological change we present a model grounded in a study of the world disk drive industry that charts the process through which the demands of a firm s customers shape the allocation of resources in technological innovation a model that links theories of resource dependence and resource allocation we show that established firms led the industry in developing technologies of every sort even radical ones whenever the technologies addressed existing customers needs the same firms failed to develop simpler technologies that initially were only useful in emerging markets because impetus coalesces behind and resources are allocated to programs targeting powerful customers projects targeted at technologies for which no customers yet exist languish for lack of impetus and resources because the rate of technical progress can exceed the performance demanded in a market technologies which initially can only be used in emerging markets later can invade mainstream ones carrying entrant firms to victory over established companies

the influence of local search and performance heuristics on new design introduction in a new product market abstract this study develops and tests three sets of predictions concerning new design introduction during the initial period of ferment in a new product market we root our predictions most directly in the evolutionary economic concepts of local search and performance heuristics first we argue that new entrants will introduce most designs that are new to a product market during an initial period of ferment second we argue that local search will lead most product market incumbents that introduce second or subsequent designs after their entry to introduce designs that are similar to those incorporated in their existing products third we argue that firms selling products based on designs that are losing aggregate share in the market will be likely to introduce products based on new designs while firms losing market share to firms that are selling the same design are unlikely to introduce new designs our empirical analysis examines the magnetic resonance imaging mri subfield of the diagnostic imaging equipment industry between 1980 and 1986 a period that begins with the introduction of the first mri design and ends with the emergence of widely accepted design characteristics the results support the argument that local search and performance heuristics along with other market factors and business characteristics influence design introduction during a period of ferment

preemptive patenting and the persistence of monopoly this article takes a different tack and inquires whether institutions such as the patent system create opportunities for firms with monopoly power to maintain their monopoly power the results apply to other situations such as brand identification spatial location and capacity expansion which share the characteristic that early or preemptive actions may lower the returns to potential competitors

reputation and decision making under ambiguity a study of u s venture capital firms investments in the emerging clean energy sector this study examines the role of reputation on decision making under ambiguity drawing on social cognition and behavioral theories we propose that a firm s reputation exerts dual pressures on its decision making under ambiguity on the one hand a firm s reputation increases its aspirations for future performance and promotes its engagement in risky strategies to achieve them on the other hand preserving the already established reputation requires a firm to deliver consistent performance over time which promotes greater use of risk reduction strategies our analyses of the u s venture capital firms investments in the clean energy sector from 1990 to 2008 demonstrate that while reputable firms are more likely to invest in the emerging sector they also employ risk reduction strategies more extensively the sector s legitimation further influences these firms investment decisions both directly and through its interaction with firm reputation

structure learning and the speed of innovating a two phase model of collective innovation using agent based modeling continual increase in the complexity of technologies and innovations has resulted in actors i e individuals or organizations becoming more dependent on other actor s knowledge and skills to complement their own skills in the innovation process as a result networks have become more and more prominent in affecting the innovation process conceptualizing innovation as a search and learning process that results in a successful product we introduce a two phase model of collective innovation that accounts for the deliberateness of the innovation process using agent based modeling we explore how interaction structure among a group of actors affects the speed at which the group can collectively innovate in addition we present results from counterfactual simulations to highlight the importance of deliberate search and changing realized connections in modeling collective innovation process moreover we discuss the effects of the structure under different mechanisms of learning and different levels of actor s learning capabilities copyright 2010 the author 2010 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

the efficiency of competing vertical chains with network externalities abstract this paper compares vertical integration and vertical separation with network externalities contrary to conventional wisdom if network effects are stronger than the threshold level of the network externality parameter manufacturers strategic choices of wholesale prices move in opposite directions i e wholesale prices may be strategic substitutes under bertrand competition second if the strength of network effects is strong enough both profits and outputs are larger under vertical separation than under integration finally if network effects are strong weak outputs wholesale prices retail prices consumer surplus and social welfare are higher lower under separation than integration

optimal cognitive distance and absorptive capacity in this paper we test the relation between cognitive distance and innovation performance of firms engaged in technology based alliances the key finding is that the hypothesis of an inverted u shaped effect of cognitive distance on innovation performance of firms is confirmed moreover as expected we found that the positive effect for firms is much higher when engaging in more radical exploratory alliances than in more exploitative alliances the effect of cumulative r d turns out to be mixed it appears to increase absorptive capacity as expected but there is clear evidence that it also reduces the effect of cognitive distance on novelty value making it increasingly difficult to find additional novelty

learning to contract evidence from the personal computer industry organizational forms involving more detailed contracts than are found in traditional spot market exchanges appear to be increasingly prevalent there has been relatively little analysis however of the extent to which firms learn how to use contracts to manage their interfirm relationships over time in this paper we conduct a detailed case study of a time series of 11 contracts concluded during 1989 1997 between the same two partners both of whom participate in the personal computer industry to explore whether and how firms learn to contract we find many changes to the structure of the contracts that cannot be fully explained by changes in the assets at risk in the relationship and evidence that these changes are largely the result of processes in which the firms were learning how to work together including learning how to contract with each other the nature of this learning appears to have been quite incremental and local that is not very far sighted we suggest how and when contracts might serve as repositories for knowledge about how to govern collaborations and suggest some boundary conditions for this phenomenon our findings also provide implications for the debate about whether contracts have a positive or negative effect on interorganizational trust we conclude with suggestions for future research

an economic theory of vertical restraints vertical restraints imposed by manufacturers on the prices locations and sales of retail firms represent a puzzling departure from the simple price mediated exchange of conventional markets in this article we analyze the theoretical basis for these restraints in a setting where retailers inform consumers and are imperfectly competitive and where a manufacturer has some monopoly power we identify three potential externalities affecting retailers decisions these externalities lead to the failure of simple uniform price contracts to coordinate the incentives of retailers with the objective of maximizing combined manufacturer and retailer profits we identify the packages of vertical restraints that are minimally sufficient under various conditions to neutralize the externalities and to achieve the joint profit maximum

product market competition and boundaries of the firm this paper studies the effects of product market competition on firm boundaries in a duopoly setting each retailer is associated with a manufacturer who must decide how to allocate property rights over a retail asset delegating property rights over the retail asset to an indepedent retailer disintegration transfers incentives from the manufacturer to the retailer and has the benefit of increasing product quality and profits owing to the retailer s superior efficiency however it also forces the manufacturer to forfeit part of the profits competition increases the net benefit from delegation and leads to more efficient vertically disintegrated structures cet article etudie la concurrence sur le marche des produits et ses effets sur les limites de l entreprise dans un modele de duopole chaque producteur associea un distributeur choisit soit une structure verticale integree dans laquelle le distributeur est son employe soit une structure desintegree dans laquelle le distributeur est independant plus efficace en termes d incitations au distributeur la structure desintegree genere des profits joints plus importants elle oblige cependant le producteur a partager les profits avec le distributeur la concurrence augmente le benefice et reduit le cout de la desintegration favorisant ainsi des structures verticales desintegrees et efficaces

strategic risk an ordinal approach strategic management researchers have shown increasing awareness of the importance of the concept of risk at the strategic level in recognition of this interest this research adopts a commonly used conceptualization of risk and shows how this conceptualization leads to a new measure of risk based upon the chance of loss of relative position within a set of firms this framework is shown to be particularly appropriate for strategy research information contained in probability distributions describing the relative positions of sets of firms over time is shown to be partitionable on the basis of gain or loss in position as well as on firm identity leading to the derivation of a new measure of strategic risk for an individual firm this development also provides a hierarchical quantification of risk at the levels of the industry group and individual firm the ordinal risk measure is applied to both hypothetical data for illustration and to data on the u s airline industry

imprecise preferences and survey design in contingent valuation during recent years the contingent valuation cv method has been widely used to value non marketed goods and services we present the results of a cv study of the value of road safety we find that stated preferences for road safety exhibit considerable imprecision appear subject to various systematic biases and are insensitive to variations in the quantity and quality of the safety improvements concerned one broad implication of these findings may be that for an important class of goods of which safety is one example standard assumptions about the structure of people s preferences may be much too strong a more specific implication concerning the design and conduct of cv surveys is that the noaa panel s widely cited blueprint for good cv practice may rely far too heavily on assumptions about the precision and sensitivity of people s preferences

bias in discrete response contingent valuation abstract the empirical literature on discrete response contingent valuation has found that seemingly innocuous changes in the statistical models estimated result in significantly different point estimates of willingness to pay this paper hypothesizes and tests several potential explanations for these results first it investigates and compares the biases inherent in single bounded and double bounded maximum likelihood estimation procedures and examines how they react to various bid designs and sample sizes then it examines the presence and identification of outliers in binary choice data and how these outliers influence estimation finally it presents an alternative approach to addressing the issue of outliers which explicitly acknowledges the possibility of upwardly biased response probabilities

market incumbency and technological inertia this paper uses a case study and a simple mathematical model to study the link between the incumbency and incentives to innovate and introduce drastically new products it identifies the conditions under which fears of self cannibalization are particularly likely to lead incumbents to soft pedal such innovations

death of the lethargic effects of expansion into new technical subfields on performance in a firm s base business this paper finds that industry incumbents that do not expand into new technical subfields tend to fare poorly in their established businesses even if the market for the established products continues to exist firms that expand from their established businesses survive longer and achieve greater subsequent market share than competitors that do not expand by some measures however a failed attempt to expand into a new subfield may be even more harmful to a base business than nonexpansion the study employs conventional and accelerated event time regression models to analyze market share and survival the sample which includes 371 incumbents in four base subfields of the medical diagnostic imaging industry between 1953 and 1989 examines performance following the emergence of five new technical subfields of the industry

modeling the effect of social factors on improving biodiversity protection the aim of this study is to investigate the effect of social factors expressed as social and institutional trust social norms and social networks on the decision of individuals to pay for improvement of environmental protection of biodiversity for this purpose an empirical study was carried out in two national parks of northern greece three scenarios were proposed differing in the management options regulatory market based and community based scenarios and the payment mechanism our empirical results show that social capital variables especially social norms and social trust have a strong influence both on the decision of individuals to pay and the specific amount stated specifically we find that social norms have a positive influence for the willingness to pay wtp of individuals of a state tax and an entrance fee regulatory and market based scenario respectively furthermore social trust has a positive impact for the wtp through an entrance fee and a community tax market based and community based scenario respectively we also find a higher wtp of individuals towards the market based scenario where participation of citizens is higher compared to the current management status concerning the impact of demographic factors we find that income does not influence the specific amount stated by individuals