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We estimate a model of dynamic oligopoly with durable goods and endogenous innovation to better understand the effect of competition on innovation in the PC microprocessor industry. Firms make dynamic pricing and investment decisions while accounting for the dynamic behavior of consumers who anticipate product improvements and price declines. We extend the(More)
P residential elections provide both an important context in which to study advertising and a setting that mitigates the challenges of dynamics and endogeneity. We use the 2000 and 2004 general elections to analyze the effect of market-level advertising on county-level vote shares. The results indicate significant positive effects of advertising exposures.(More)
Product replacement plays a critical role in many high-tech durable goods markets. Since these markets frequently undergo both rapid improvements in quality and falling prices, the consumer's replacement decision is most often due to product obsolescence, as opposed to wear and tear. Despite its importance, this issue has received insufficient attention in(More)
Dating to the classic works of Alonso, Mills, and Muth, the production function for housing has played a central role in urban economics and local public finance. This paper provides a new flexible approach for estimating the housing production function which treats housing quantities and prices as latent variables. The empirical analysis is based on a(More)
We consider the problem of integrating spatial amenities into locational equilibrium models with multiple jurisdictions. We provide sufficient conditions under which models that assume a single housing price in each community continue to apply in the presence of location-specific amenities that vary both within and across communities. If these conditions(More)
This paper discusses the role of agents' beliefs and their implications for the economic modeling of their behavior, in particular, their behavior over time. The paper also discusses the corresponding planning problems facing both firms and consumers in their current decision making. After a general discussion of the consumer and firm problem, we discuss(More)
C ommercial open source software (COSS) products—privately developed software based on publicly available source code—represent a rapidly growing, multibillion-dollar market. A unique aspect of competition in the COSS market is that many open source licenses require firms to make certain enhancements public, creating an incentive for firms to free ride on(More)