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A high level of trust within a small elite may, like a low level of trust in society at large, be a serious impediment to economic development. This is because such concentrated high trust among the elite promotes political rent seeking, known to retard growth. We propose that entrusting the governance of a country's great corporations to a few wealthy(More)
This paper analyzes a dynamic mixed duopoly in which a profit-maximizing competitor interacts with a competitor that prices at zero (or marginal cost), with the cumulation of output affecting their relative positions over time. The modeling effort is motivated by interactions between Linux, an open-source operating system, and Microsoft's Windows in the(More)
The paper examines the effects of market organization on incentives to invest and on the volume of trade. Businesses purchase trillions of dollars worth of resources and manufactured inputs from other businesses both directly and through dealers. Hundreds of new dealers have entered the market with the advent of business-to-business electronic commerce.(More)
I present a model to assess the extent to which recommender systems can account for the 'long tail', an increase in the tail of the sales distribution. Consumers face a search problem within a pool of horizontally di¤erentiated products supplied by a monopolist. They are endowed with a taste pro…le that determines their probability of matching with any(More)
This paper provides an axiomatic foundation for a maxmin expected utility over a set of priors (MMEU) decision rule in an environment where the elements of choice are Savage acts. This characterization complements the original axiomatiza-tion of MMEU developed in a lottery-acts (or AnscombeeAumann) framework by I. MMEU preferences are of interest primarily(More)
The literature on auctions holds the view that collusive bidding in auctions harm the seller. Our purpose in this paper is to explore if cooperation among buyers can actually benefit the seller in auction-like environments in which the sale of the object confers a benefit to all potential bidders. There is a large class of auctions that admit such(More)
The Public-Private Center is a Research Center based at IESE Business School. Its mission is to develop research that analyses the relationships between the private and public sectors primarily in the following areas: regulation and competition, innovation, regional economy and industrial politics and health economics. Research results are disseminated(More)