Abstract The new knowledge intensive direction of technological change is magnified at the firm level by limited exhaustibility knowledge. This triggers cumulability and extensibility for which larger firm, lower generation costs from using a stock existing knowledge, exploitation related to output based on use same piece consequences are twofold. First, size, share intangible capital in total ...

We consider a firm that sells a product over T periods without knowing the demand function. The firm sequentially sets prices to earn revenue and to learn the underlying demand function simultaneously. In practice, this problem is commonly solved via greedy iterative least squares (GILS). At each time period, GILS estimates the demand as a linear function of the price by applying least squares ...

We study a vertically differentiated market where two firms simultaneously choose the quality and price of the good they sell and where consumers also care for the average quality of the goods supplied. Firms are composed of two factions whose objectives differ: one is maximizing profit while the other maximizes revenues. The equilibrium concept we model, called Firm Unanimity Nash Equilibrium ...

Building on the Resource-Based View of the firm, we advance the idea that a firm’s customer network can be a strategic asset. We suggest that network effects are a function of network size (i.e., installed customer base) and network strength (i.e., the marginal impact of a unit increase in network size on demand). We empirically study these network effects in the 16-bit home video game industry...

In this paper we ask when will a firm earn more profits from selling the attention of its customers to advertisers than from selling the underlying product itself. In other words, when will a firm become an advertising " medium " ? We investigate this decision as a function of the intensity and nature of competition. We show that regardless of inherent product value to customers, when the firm ...

Economists have become increasingly frustrated with the textbook model of the firm. The "firm" of intermediate microeconomics is a production function, a mysterious "black box" whose insides are off-limits to respectable economic theory (relegated instead to the lesser disciplines of management, organization theory, industrial psychology, and the like). Though useful in certain contexts, the te...

The ongoing digitization of multiple industries has drastically reduced the half-life of skills and capabilities acquired by knowledge workers through formal education. Thus, firms are forced to make significant ongoing investments in training their employees to remain competitive. Existing research has not examined the role of training in improving firm level productivity of knowledge firms. T...

in this reaserch by comparing some of the recent litreture on indentification production function, we estimate total factor productivity. we focus on parametric methods, especially blundell and bond (2000), ollay and pakes (1996), levinsohn and petrin (2003) and ols.using panel data on plant-level of 4-digits isic in iran from 1380 to 1390. we choose levinsohn and petrin (2003) as the most appr...