Conley and Wilkie (1993) introduced and axiomatized the Nash extension bargaining solution, defined on a domain of comprehensive but not necessarily convex problems. In this paper we present a non-cooperative game that implements the Nash extension solution in subgame perfect equilibria in the limit as the discount rate applied between rounds of play vanishes. Journal of Economic Literature Cla...

This paper shows how the interaction between decentralized information gathering and discreteness of investment decisions at the individual level can generate random fluctuations in aggregate investment that involve occasionally large allocation errors. This interaction is illustrated in a model in which private information is costly to acquire and prices reveal information. The unique rational...

extended abstract 1. introduction given the horizontal expansion of cities in recent decades, there are a lot of unused and abandoned lands in large cities. these lands are now an opportunity for urban redevelopment and investment. attracting domestic and foreign investments to cities has been very common in recent decades, which has turned the national nature of large cities to international (...

This paper analyzes how pharmaceutical research and development (R&D) investment responds to publicly supported biomedical research performed mainly at universities and nonprofit institutions. New microlevel data on investment, by the U.S. National Institutes of Health, allow measures of public basic and clinical research in seven medical classes to be included in a distributed lag model explai...

We characterize equilibrium in a dynamic investment game with two-dimensional signals, where each firm observes its idiosyncratic cost of investment and a signal correlated with common investment returns. We demonstrate that the one-step property holds and that investment-cost cutoffs for type-1 firms (with the high common-value signal) and type-0 firms (with the low common-value signal) satisf...

This paper uses proprietary data on the employment histories of a large fraction of the U.S. labor force to show that labor market outcomes can be partly explained by previous employers’ technology investment decisions. Exploiting leveraged buyouts as shocks to firms’ production technologies, we find that workers employed when a private equity acquisition occurs realize longer subsequent employ...

We model alternative institutional arrangements for building and managing facilities for provision of public services, including the use of the Private Finance Initiative (PFI), by exploring the effects on innovative investment activity by providers. The desirability of bundling the building and management operations is analyzed, and it is considered whether it is optimal to allocate ownership ...

ii The contents of this paper are the authors' sole responsibility. They do not necessarily represent the views of the Oxford Institute for Energy Studies or any of its members. This publication may be reproduced in part for educational or non-profit purposes without special permission from the copyright holder, provided acknowledgment of the source is made. No use of this publication may be ma...