This paper sets up a model to account for differences in total factor productivity due to differences in enforcement of contracts. Vertical specialization generates the need for intra-period credit, because final goods producers cannot pay their intermediate goods suppliers before they produce their final good. The paper shows that if there are enforcement problems, the capital distribution is ...

Product differentiation in durable-goods markets is often complicated by the fact that decision processes for the market participants are intrinsically dynamic. For example, consumers can employ a variety of consumption patterns with actions that vary in time, even for a single brand of goods. Transaction costs in selling used goods prompt consumers to think ahead in order to avoid adverse lock...

The introduction of electronic means of sale and dissemination of information goods has made a new set of pricing and bundling strategies possible. In particular, information goods have a negligible marginal cost. This provides producers with an incentive to sell goods in bundles. This new space of strategies also presents producers with a set of problems to solve. In most cases, a producer wil...

We develop a macroeconomic model with adverse selection. A continuum of households purchase goods from a continuum of anonymous producers. The quality of products can only be learned after trade. Adverse selection arises as low-quality goods deliver higher profits for producers but are less desirable for households. Higher aggregate demand induces more high-quality goods, raises average quality...

This paper develops a model in which the interaction of forward and backward linkages determines the range of goods and of parts that are produced in a developing economy. Using a simple formalisation of the range and sophistication of parts used in different goods, the paper investigates the effects of trade and industrial policy. Linkages create multiplier effects, so, for example, support fo...

nowadays, efficient goods distribution in target markets is one of the most important challenges of marketing managers and goods producers. distribution of goods and services has a significant contribution in gross domestic product (gdp) of countries. so an efficient distribution network can support constant economic development of countries and reduces end-user price of products. identifying a...