infonet-economy

We show that strictly competitive, finite games of perfect information that may end in one of three possible ways can be solved by applying only two rounds of elimination of dominated strategies.

This paper analyses the use of transfer pricing as a strategic device in divisionalized firms facing duopolistic price competition. When transfer prices are observable, both firms’ headquarters will charge a transfer price above the marginal cost of the intermediate product to induce their marketing managers to behave as softer competitors in the final product market. When transfer...

The paper considers a two stage capacity and production planning model under uncertainty. The optimal second stage production policy falls into three cases: When capacity is slack the firm will produce with the cost minimizing production rate and adjust the production time to meet its output target. When the capacity constraint is binding, the firm will first adjust the production...

This paper analyzes the dependence of average consumption on the saving rate in a one-sector neoclassical Solow growth model with production shocks and stochastic rates of population growth and depreciation where arbitrary ergodic processes are considered. The long-run behavior of the stochastic capital intensity and hence average consumption is uniquely determined by a random fixed...

Aktien von Fußball-Vereinen haftet immer noch das Etikett des Exotischen an: bislang werden diese denn auch erst an wenigen europäischen Börsen gehandelt. So werden an der London Stock Exchange (LSE) 18 der 92 englischen sowie 2 schottische Profi-Clubs notiert. Außerbörslich (OFEX) werden darüber hinaus Arsenal London, Manchester City und Glasgow Rangers gehandelt. In...

According to the widely used Managerial Power Model, a higher hierarchical position with associated higher power leads to higher compensation. In contrast, the Compensating Wage Differentials Model argues that there is a non-positive relationship between positional power and total compensation. Both power and income yield utility and in equilibrium managers are prepared to trade-off...