interfering with secondary markets we present a model to address in a unified manner four ways in which a monopolist can interfere with secondary markets in the model consumers have heterogeneous valuations for quality so that used good markets play an allocative role our results are the following 1 in contrast to swan s famous independence result a monopolist does not provide socially optimal durability 2 allowing the monopolist to rent does not restore socially optimal durability and increases the monopolist s market power in the used market however forcing the monopolist to sell the goods may be a bad policy because it would lead to either lower output or lower durability 3 the manufacturer benefits from a well functioning used good market despite the fact that used goods provide competition for new goods 4 the monopolist prefers to restrict consumers abilities to maintain the good

toward natural implementation the authors identify some fundamental conditions that a natural mechanism should satisfy in exchange economies first they provide necessary and sufficient conditions for social choice correspondences to be implemented in nash equilibria by natural mechanisms second they show that the class of social choice correspondences implementable by price and two quantity mechanisms is equivalent to the class of social choice correspondences implementable by price and allocation mechanisms third the authors find that the no envy correspondence is implementable by a two quantity mechanism and the fair correspondence is implementable by a price quantity mechanism copyright 1996 by economics department of the university of pennsylvania and the osaka university institute of social and economic research association

toward a contingency framework of export entrepreneurship conceptualisations and empirical evidence this paper reports the findings of a study which employed a contingency export entrepreneurial approach to investigate the critical influences on export venture creation among a sample of nigerian small firms responding to the repeated calls in the literature for multi disciplinary research frameworks the paper draws on perspectives from entrepreneurship exporting and contingency literatures to examine the antecedent and moderating influences on the export behavior of small firms it explores in particular the effect of entrepreneurial orientation and external environmental moderators in the export venture creation process of small firms the findings suggest that an entrepreneurial orientation is associated with better export venturing and is the appropriate strategic posture for small firms operating in hostile environments it would appear also that this orientation is associated with certain decision maker characteristics including international orientation and contacts and previous business experience and firm level competencies by thus highlighting the entrepreneurial dimensions of export venturing this paper makes the case for greater policy focus on strengthening the entrepreneurial foundations capacities of small firms

explaining the international intensity and global diversity of early stage technology based firms abstract early stage technology based firms are confronted with the complexity of foreign markets and global competition from their earliest stages of development not only must technology entrepreneurs keep pace with ever changing technology based product offerings but they must also simultaneously stay abreast of competitors and industry trends in multiple countries we surveyed 75 small technology based firms in ontario to evaluate their international activities and try to explain both the intensity of their foreign sales the percent of total sales coming from foreign sources as well as the global diversity of the markets in which they operate the number of major regional areas from which they derive revenue our findings suggest that resources necessary to pursue international sales have an important impact on both foreign market intensity and diversity in contrast however attitudes towards foreign markets helped to explain international intensity but not global diversity additionally firm age was positively associated with global diversity but not international intensity these findings support the notion of small technology firms being instant internationals but suggest that proceeding to the next step achieving global diversity requires significantly greater time and resources in line with prior empirical research these firms tended to increase their international intensity and diversity as they became larger in contrast with what the literature suggests however firms utilizing strategic alliances were no more active internationally than those not using strategic alliances finally government assistance helped to explain the international intensity of these firms but not the global diversity these results help managers researchers and shapers of public policy better understand the international activities of early stage technology firms given the relationship between attitudes and international intensity there appears to be some opportunity associated with trying to influence the attitudes of ceos regarding initial expansion into international markets for firms to become globally diverse however there is a greater dependency on the availability of resources as well as accumulated business experience managers should recognize the pattern this suggests and perhaps be leery of becoming too globally diverse too quickly overall the relationship between size and foreign activities suggests that growth opportunities are linked to international markets although some broad relationships are suggested regarding the need for collaboration and government support further research is necessary to understand the use of strategic alliances as well as government assistance in both international market intensity and global diversity

internationalisation conceptualising an entrepreneurial process of behaviour in time this paper presents a three stage process of conceptual development in response to the call for a unifying direction for research in the emergent field of international entrepreneurship drawing on classic approaches to internationalisation and importing insight from entrepreneurship as a separate and distinct field of study the paper develops three potential models of internationalisation as a time based process of entrepreneurial behaviour the models evolve from the simple through general to precise levels of conceptualisation research implications are discussed

a model of the evolution of duopoly does the asymmetry between firms tend to increase or decrease this paper is an attempt to identify some of the factors that affect the evolution of market structure in a model of dynamic competition between two firms the stochastic evolution of the state of competition depends on the respective effort rates of the firms the question is whether the current leader works harder than the laggard does the gap between firms tend to increase or decrease we show that several effects are at work the state tends to evolve in the direction where joint payoffs are greater since joint payoffs are related to joint product market profits less joint effort costs there are two classes of effect the joint profit effect and various joint cost effects the latter result in part from the pattern of profits and in part from endpoint effects that give relief from efforts asymptotic expansions illuminate these influences moreover we show by numerical simulation that there is another kind of joint cost effect the pattern of joint effort costs can influence the pattern of evolution of market structure and the evolution of the pattern of market structure can influence the pattern of efforts in a mutually self reinforcing manner in particular there may be equilibria in which this last effect means that the laggard works harder than the leader even though all the other effects work in favour of the leader

the learning curve market dominance and predatory pricing sufficient conditions for id and iid are given in the case of two step learning in which a firm reaches the bottom of its learning curve after just two sales however examples are also constructed for the two step learning case in which neither id nor iid holds it is also shown that in equilibrium iid implies that learning is privately disadvantageous although it is socially advantageous finally introducing avoidable fixed costs and possible exit into the model yields a new theory of predatory pricing based on the learning curve hypothesis

feasible and continuous implementation there has been a great deal of research in recent years investigating the question of whether or not there exist institutions game forms for which the set of equilibria will coincide with the set of walrasian equilibria in this paper we show the existence of a game form that is feasible both for equilibrium and disequilibrium strategies continuous and for which the set of nash equilibria coincides with the set of constrained walrasian equilibria for all pure exchange economies the game form allows agents to behave strategically both with respect to their preferences and their initial endowments

trends in international business research twenty five years later international business ib research has made enormous strides in the quarter century since jibs was inaugurated this article reflects upon the development of ib research during that period it first reviews the findings and recommendations of a comprehensive survey of the embryonic field of ib research conducted twenty five years ago several early trends identified then are discussed the astonishing acceleration in the pace of ib research the broadening of research activity across a greater range of functional areas and an expanding geographic base of research outside of north america especially in europe we then discuss the evolution of ib research since that formative period growing breadth and diversity greater methodological sophistication a move toward research transcending traditional functional boundaries development of new research areas such as management information systems and international coalitions and alliances research on the phenomenon of transnational firms as complete systems and the continued broadening of the geographic base of research emerging research areas such as international entrepreneurship and small business and the greening of business are identified the article concludes with calls for more research collaboration across national boundaries and for greater synthesis of research into broader more integrative frameworks

evolutionary implementation and congestion pricing we consider an implementation problem faced by a planner who manages a roadway network the problem entails both hidden information and hidden actions we solve the planner s problem by introducing a new class of mechanisms and a new notion of implementation the mechanisms called price schemes attach transfers to the available routes they do not involve direct revelation the method of implementation is evolutionary requiring that players who follow any reasonable myopic adjustment process eventually learn to behave as the planner desires we show that efficient behaviour can be guaranteed using simple decentralized price schemes

international versus domestic entrepreneurship new venture strategic behavior and industry structure abstract international entrepreneurship is defined in this study as the development of international new ventures or start ups that from their inception engage in international business thus viewing their operating domain as international from the initial stages of the firm s operation one hundred and eighty eight new venture firms in the computer and communications equipment manufacturing industries are classified according to the percentage of their sales in the international market ventures with no sales derived from international activities are considered domestic new ventures and ventures with sales from international activities comprising greater than 5 of total sales are considered international new ventures the strategy and industry structure profiles of international new ventures are significantly different from domestic new ventures the internationals pursue much broader market based strategies seeking a strategy of broad market coverage through developing and controlling numerous distribution channels serving numerous customers in diverse market segments and developing high market or product visibility the internationals also emphasize a more aggressive entry strategy building on outside financial and production resources to enter numerous geographical markets on a large scale securing patent technology is also an important component of their strategy this suggests that the internationals compete by entering the industry on a large scale seeking to penetrate multiple markets with the recognition that external resources are necessary to support such an entry whereas both the domestics and the internationals characterize domestic competition as being relatively intense the international new ventures compete in industries with higher levels of international competition it is not clear from this research whether the new venture selects an industry with a high degree of international competition and therefore responds with an international orientation or because the new venture has an international orientation it perceives or recognizes a higher degree of international competition another industry structure difference is the internationals perceived higher degree of restrictiveness due to government regulation it is unclear whether this restrictiveness motivates new ventures to seek less regulated international environments or if it indicates that when competing internationally the new venture is confronted with increased regulatory requirements domestic new ventures are distinguished by their emphasis on a production expansion strategy and customer specialization strategy the production specialization strategy consists of focusing on limited geographical markets maintaining excess capacity and pursuing forward integration the customer specialization strategy incorporates the production of a specialty product that is purchased infrequently thus for both of the domestic strategies a consistent closeness between the producer and consumer is implied this may be an important basis underlining the new venture s decision to compete in an exclusive domestic context this study offers initial support for the notion of international entrepreneurship by its findings that there are significant differences between new venture firms competing domestically and new ventures choosing to also enter international markets

characterizing natural implementability the fair and walrasian correspondences abstract we characterize natural implementability in exchange economies when a social choice correspondence possibly recommends a pareto efficient allocation where the common marginal rate of substitution is not determined uniquely we find that the no envy and efficient or fair correspondence cannot be implemented by any natural mechanism with a price and a quantity announcement but can be implemented by a natural mechanism with a price and two quantity announcement on the other hand the constrained walrasian correspondence can be implemented by a natural price quantity mechanism with budget balance journal of economic literature classification numbers c72 d51 d63 d78

internationalization tacit knowledge and the top management teams of mncs this study investigates the effects of several dimensions of internationalization on the behavior of mncs top management teams the effects include top executives personal presence in foreign markets their participation in meetings about international strategic issues and their tacit knowledge of the firms international business activities

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

dynamic price competition with network effects i consider a dynamic model of competition between two proprietary networks consumers die and are replaced with a constant hazard rate and firms compete for new consumers to join their network by offering network entry prices i derive a series of results pertaining to a existence and uniqueness of symmetric equilibria b monotonicity of the pricing function e g larger networks set higher prices c network size dynamics increasing dominance vs reversion to the mean and d firm value how it varies with network effects finally i apply my general framework to the study of termination charges in wireless telecommunications i consider various forms of regulation and examine their impact on firm profits and market share dynamics

born international smes bi level impacts of resources and intentions the katz and gartner 1988 model describes four central properties of emerging organizations resources intention exchange and boundary while designed as a general model for organizations the approach has the potential to explain the early lives of born international firms in this study boundary is used to define the central sampling frame two other properties resources and intention are evaluated in terms of their impact on the fourth property exchange measured as a firm s export growth and intensity given the inherent presence of two levels of analysis in emerging organizations intention and resources are evaluated at both the individual and the organizational level a sample n 47 of young born international firms in the indian software industry was studied using a questionnaire results of the analysis are mixed for resources at both the individual and firm level variables intention is significant at the individual level but not the firm level contrary to other studies these findings suggest that during the early stages of firm development owner not firm characteristics play a pivotal role in performance especially exports the speculation is that this occurs because in early stages firms are relatively disorganized relative to the owner

aftermarket power and foremarket competition i revisit the issue of aftermarkets by developing an infinite period model with overlapping consumers if the aftermarket is characterized by constant returns to scale then social surplus and consumer surplus are invariant with respect to aftermarket power under increasing returns to scale however greater aftermarket power leads to greater concentration in the foremarket higher barriers to entry higher social surplus and possibly higher consumer surplus

the strength of direct ties evidence from the electronic game industry abstract we analyze the economic effects of a developer s connectedness in the electronic game industry knowledge spillovers between developers are likely to be of special relevance in this knowledge intensive and regionally concentrated industry we calculate social network measures for a developer s connectedness to other developers at multiple points in time in a regression in which we exploit within career variation in social network measures we find that the number of direct ties a developer has to other developers has a strong effect on both a game s revenues and critics scores the quality of indirect ties makes no additional contribution to the game s success

an evolutionary approach to pre play communication we add a round of pre play communication to a finite two player game played by a population of players pre play communication is cheap talk in the sense that it does not directly enter the payoffs the paper characterizes the set of strategies that are stable with respect to a stochastic dynamic adaptive process periodically players have an opportunity to change their strategy with a strategy that is more successful against the current population any strategy that weakly improves upon the current poorest performer in the population enters with positive probability when there is no conflict of interest between the players only the efficient outcome is stable with respect to these dynamics for general games the set of stable payoffs is typically large every efficient payoff recurs infinitely often

the internationalization of new and small firms a resource based view abstract this paper seeks to enhance understanding of the internationalization of small and medium sized enterprises smes the study focuses upon the following issues can the characteristics of principal founders businesses and the external environment at one point in time be used to explain at a later date whether a firm is still an exporter or a nonexporter whether exporting firms are larger in size than nonexporting firms whether exporting firms report superior performance than nonexporting firms and whether exporting firms are more likely to survive than nonexporting firms to address these questions this study draws upon a sample of 621 manufacturing construction and services businesses located in twelve contrasting environments in great britain surveyed first in 1990 91 and then re interviewed in 1997 a resource based view is reviewed to identify the range of factors encouraging some owner managed smes to enter export markets four categories of human and financial capital are examined general human capital resources the principal founder s management know how the principal founder s specific industry know how and a principal founder s ability to obtain financial resources that can act as a buffer against random shocks variables relating to resource availability in the external environment were also collected and considered control variables previous studies have highlighted substantial industry differences in the propensity for businesses to enter export markets as well as to survive the principal industrial activity of each business in 1990 91 was therefore considered a control variable variables collected during the 1990 91 survey were selected to explain variations in the propensity to export reported by surviving independent firms in 1997 after elimination of missing values the working sample was reduced to 116 independent firms for this study 86 nonexporters and 30 exporters in 1997 in addition the 21 variables were selected to explain variations in business size in 1997 profit performance relative to competitors reported in 1997 changes in employment over the 1990 91 to 1997 period and business survival over the 1990 91 to 1997 period 213 survivors and 395 nonsurvivors multivariate statistical analysis confirmed that previous experience of selling goods or services abroad is a key influence encouraging firms to export businesses with older principal founders with more resources denser information and contact networks and considerable management know how are significantly more likely to be exporters further businesses with principal founders that had considerable industry specific knowledge are markedly more likely to be exporters businesses principally engaged in the service sectors and those located in urban areas are significantly less likely to be exporters a key finding of this study is that the explanatory variables significantly associated with the propensity to export sales abroad are not the same as those significantly associated with selected size and performance measures the resource based explanatory variables selected fail to significantly detect employment growing firms over the 1990 91 to 1997 period they also fail to significantly distinguish surviving independent firms from nonsurviving firms results from this study will provide policy makers and practitioners with additional insights into the key resource based factors associated with the decision by new and small independent firms to export sales abroad practitioners and policy makers can focus upon the characteristics of principal founders businesses and the external environment to predict the subsequent propensity of an independent firm to be an exporter policy makers and practitioners who want more new and small firms to export outside their local areas may prefer to target their resources and assistance to the relatively smaller proportion of firms that have the business and principal founder profiles that are significantly associated with a firm being an exporter

fair divisions as attracting nash equilibria of simple games abstract we give a mechanism fully implementing envy free divisions such that strategy spaces are symmetric the set of nash equilibria is a global attractor for the best reply dynamics as a byproduct undesired mixed strategy equilibria are weeded out by the adjustment process

entrepreneurship and growth the strategic use of external resources abstract a common characteristic of entrepreneurial farms is fast growth a common problem for their managers is obtaining enough resources to accommodate that growth a typical entrepreneur either individual or corporate often desires to pursue a detected opportunity but lacks the necessary resources to make it happen again gaining access to those resources becomes the first entrepreneurial problem one of the most efficient weapons used by entrepreneurial firms to gain market share from larger more powerful corporations is their flexibility but the progressive accumulation of resources that growth often entails brings almost necessarily a loss of that very flexibility that made the firm successful in the first place this can be termed the second entrepreneurial dilemma networking practices are a way to overcome these problems essentially networking is a system by which entrepreneurs can tap resources that are external to them i e that they don t control in its simplest form networking consists of the use of all personal relationships to obtain advice financing insider sales etc birley 1986 in its most sophisticated form entrepreneurs set up an elaborate web of relationships between companies most of them of similar entrepreneurial characteristics that are extremely efficient and flexible at delivering a product or service in all cases we find that the ability to exploit resources that are outside the entrepreneur s control is a constant of entrepreneurial high growth management this is why entrepreneurs have been defined as being primarily motivated by the pursuit of opportunities as opposed to those managers exclusively concerned with the proper management of the resources already controlled by their firm stevenson 1983 stevenson and gumpert 1985 this paper proposes a view whereby the essence of entrepreneurship is seen precisely in the ability and willingness to use external resources a statistical validation of the main hypothesis i e that entrepreneurial fast growing firms do use more external resources than their competitors is then attempted the results strongly support the hypothesis it is found that the fastest growing firms in a very large sample of public companies are much less integrated make more use of external resources than their competitors in addition those firms that are at the forefront of using external resources grow on average much faster more than 10 every year than their competitors over a long period of time ten years this study s implication for managers seems clear it constitutes yet another piece of evidence in favor of the efficiency of networking arrangements being flexible enough to use external resources allows the entrepreneurial firm to break through the limits to sustainable growth and at the same time lowers its risk for it taps into someone else s experience and know how entrepreneurs and entrepreneurial managers must not be deterred by the lack of resources in the pursuit of opportunities

the hierarchical model of market entry modes in this study we propose and test a hierarchical model of market entry modes entry modes can first be viewed as equity based versus non equity based within equity based modes the choice is between wholly owned operations and equity joint ventures while within non equity based modes the choice is between contractual agreements and export empirically we demonstrate that there are factors that exert substantial influences at the equity versus non equity level but rather weak influences at the lower level of choice hierarchy the empirical results are based on a sample of over 10 000 foreign entry activities into china between 1979 to 1998 the findings provide supportive evidence for the hierarchical model of market entry modes

nash equilibrium and welfare optimality if is a set of social alternatives a social choice rule scr assigns a subset of a to each potential profile of individuals preferences over a where the subset is interpreted as the set of welfare optima a game form or mechanism implements the social choice rule if for any potential profile of preferences 1 any welfare optimum can arise as a nash equilibrium of the game form implying in particular that a nash equilibrium exists and 2 all nash equilibria are welfare optimal the main result of this paper establishes that any scr that satisfies two properties monotonicity and no veto power can be implemented by a game form if there are three or more individuals the proof is constructive