This paper studies equilibrium behavior in a class of games that models asymmetric competitions with unconditional and conditional investments. Such competitions include lobbying settings, labor-market tournaments, and R&D races, among others. I provide an algorithm that constructs the unique equilibrium in these games, and apply it to study competitions in which a fraction of each competitor’s...

Investments in IT have become a dominant part of the capital budgets of many organizations. While the costs seem readily identifiable, many of the benefits are elusive. As a result decision makers are faced with difficult questions: How should IT investments be designed and managed to ensure alignment with corporate strategy? How should such investments be prospectively justified? What more (th...

We consider an economic model of child development with multiple stages. Due to incomplete information, parents are not able to tailor their investments to their child's type when the child is young. We show that incomplete information weakens the importance of early investments in children when inter-stage investments are easily substitutable, but strengthens them when substitution is difficul...

The subject of the study is application a variable approach to estimate volume investments required for implementation investment project in form capital investments. considers domestic and foreign literature on issue exceeding actual spent creation facility over planned In modern conditions, construction increases from moment customer makes management decision begin at stage studying feasibili...

Conditions and factors that affect the success or failure of investments in information technology (IT) are not well understood. In this paper we explore possible factors that impact the success of IT investments. We use event study methodology to determine successful investments. Among the factors we investigate are those that relate to the operation of the investing firm, such as the use of m...

Investments in protective measures involve an initial immediate cost in exchange for a stream of potential benefits accruing over time in the form of reduced expected losses. This paper describes two studies in which individuals were asked both to make choices and indicate the maximum amount they were willing to pay (WTP) for such protective measures. By varying the number of years that the mea...

When undertaking cyber security risk assessments, we must assign numeric values to metrics to compute the final expected loss that represents the risk that an organization is exposed to due to cyber threats. Even if risk assessment is motivated from real-world observations and data, there is always a high chance of assigning inaccurate values due to different uncertainties involved (e.g., evolv...

A portfolio of different stocks and a risk-less security whose composition is dynamically maintained stable by trading shares at any time step leads to a growth of the capital with a nonrandom rate. This is the key for the theory of optimal-growth investment formulated by Kelly. In presence of transaction costs, the optimal composition changes and, more important, it turns out that the frequenc...

Though the Multilateral Agreement on Investment (MAI) has failed, the original draft is likely to serve as a basis for future negotiations. This article gives a critical assessment of the draft from an industrial economics point of view. First, I summarize the contents of the agreement which is relevant for market structure and competition. Then I develop the industrial economics approach, whic...