This paper considers vertical relations between an upstream manufacturer and a downstream retailer that can independently obtain a low-quality, discount substitute. The analysis reveals that under full information the retailer offers both varieties only if it is optimal to do so under vertical integration. However, when the retailer is privately informed about demand, then the retailer will off...

Models of residential and workplace location choice prevalent in the literature often assume that one choice dimension is exogenous to the other. In our view, a broad and uniform assumption that one choice dimension is exogenous and influences the other is too strong to use as the foundation for current behavioral research or applied policy analysis. We seek to examine the interdependence of re...

While innovation and growth can be promoted internally through focus on research and development (R&D), many firms find acquisition from external sources to be a fast and attractive alternative. Despite the numerous theories of merger and acquisition in the literature, no empirical study has tackled the problem of target selection in an acquisition. This paper is the first to study the target s...

Abstract. Since Manski’s (1975) seminal work, the maximum score method for discrete choice models has been applied to various econometric problems. Kim and Pollard (1990) established the cube root asymptotics for the maximum score estimator. Since then, however, econometricians posed several open questions and conjectures in the course of generalizing the maximum score approach, such as (a) asy...

Acknowledgements: This research has been supported in part by a grant from the Social Sciences and Humanities Research Council of Canada (410-02-0705). The comments and suggestions of an anonymous referee were very helpful in improving the paper. This submission was handled by Gilbert Laporte. Abstract This paper studies the interplay between industrial firms and government concerning the colle...

Individual choices are affected by complex factors and the challenge consists of how to incorporate these factors in order to improve the realism of the modelling work. The presence of limits, cut-offs or thresholds in the perception and appraisal of both attributes and alternatives is part of the complexity inherent to choice-making behaviour. The paper considers the existence of thresholds in...

Discrete choice model is the most used methodology for studying traveler’s mode choice and demand. However, to calibrate the discrete choice model needs to have plenty of questionnaire survey. In this study, an aggregative model is proposed. The historical data of passenger volumes for high speed rail and domestic civil aviation are employed to calibrate and validate the model. In this study, d...

We examine the impact of glucose on a Bayesian choice task that creates a separating equilibrium between high-level Bayesian choice and lower-level reinforcement heuristic choice. Consistent with a dual systems framework, we hypothesize that glucose administration will both increase reaction times and improve Bayesian accuracy because it should shift decision making towards the more deliberate ...

Since the industry revolution, companies have tried to standardize more their components, in order to allow mass production and to increase components’ commonality between products. To remain competitive, companies always have to offer more variety to customers. Manufacturers of complex assembled products that are facing the challenge of mass customization are forced to increase simultaneously ...