... In the absence of patent policy, if a firm produces a product similar to the pioneer&... more ... In the absence of patent policy, if a firm produces a product similar to the pioneer's but with a more efficient process, it ... threatened, this tradeoff induces the entrant to engage in excessive product differentiation at the expense of process innovation, relative to the social optimum. ...
ABSTRACT In this paper, a sequential research and development programme is considered for which s... more ABSTRACT In this paper, a sequential research and development programme is considered for which several categories of related technologies are available to develop, each having the potential to produce some final product. At each stage of the programme, an optimal portfolio of technologies is chosen, given the information acquired from the previous stages, and those contingent optimal plans are followed in all subsequent stages. The model is applied to coal liquefaction technologies to emphasize the costs that may be incurred by erroneously approaching the development programme as a once-and-for-all endeavour rather than in a sequential framework. The results of the synthetic oil application indicate that the acceleration of the programme may be optimal when the probability of successful development decreases. Under these conditions, adoption of a ‘crash programme’ in which all projects are researched simultaneously, may lead to deferral of synthetic oil development.
International Journal of Industrial Organization, 1983
This paper demonstrates that vertical restraints are profitably imposed by a manufacturer or whol... more This paper demonstrates that vertical restraints are profitably imposed by a manufacturer or wholesaler who has some market power and whose product is sold in a monopolistically competitive downstream market. Simple conditions are developed under g hich a price floor (resale price maintenance) or a price ceiling is profitable, and under which private incentive for a restraint is su~cient for its social desirability. Where demand elasticities are constant, observed vertical price floors are always welfare-improving but profitable price ceilings may decrease welfare. Ika the special case of the CES-aggregate-surplus specification with competitive conjectures, price ceilings are profitable and welfare-decreasing.
... In the absence of patent policy, if a firm produces a product similar to the pioneer&... more ... In the absence of patent policy, if a firm produces a product similar to the pioneer's but with a more efficient process, it ... threatened, this tradeoff induces the entrant to engage in excessive product differentiation at the expense of process innovation, relative to the social optimum. ...
ABSTRACT In this paper, a sequential research and development programme is considered for which s... more ABSTRACT In this paper, a sequential research and development programme is considered for which several categories of related technologies are available to develop, each having the potential to produce some final product. At each stage of the programme, an optimal portfolio of technologies is chosen, given the information acquired from the previous stages, and those contingent optimal plans are followed in all subsequent stages. The model is applied to coal liquefaction technologies to emphasize the costs that may be incurred by erroneously approaching the development programme as a once-and-for-all endeavour rather than in a sequential framework. The results of the synthetic oil application indicate that the acceleration of the programme may be optimal when the probability of successful development decreases. Under these conditions, adoption of a ‘crash programme’ in which all projects are researched simultaneously, may lead to deferral of synthetic oil development.
International Journal of Industrial Organization, 1983
This paper demonstrates that vertical restraints are profitably imposed by a manufacturer or whol... more This paper demonstrates that vertical restraints are profitably imposed by a manufacturer or wholesaler who has some market power and whose product is sold in a monopolistically competitive downstream market. Simple conditions are developed under g hich a price floor (resale price maintenance) or a price ceiling is profitable, and under which private incentive for a restraint is su~cient for its social desirability. Where demand elasticities are constant, observed vertical price floors are always welfare-improving but profitable price ceilings may decrease welfare. Ika the special case of the CES-aggregate-surplus specification with competitive conjectures, price ceilings are profitable and welfare-decreasing.
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Papers by Nancy Gallini