Showing papers by "Barry Nalebuff published in 1999"
TL;DR: In this paper, the authors developed a follow-the-leader model to explain the strategic component of political participation, which depends on the expected closeness of the race and how voters respond to their effort.
Abstract: Using state-by-state voting data for U.S. presidential elections, the authors observe that voter turnout is a positive function of predicted closeness. To explain the strategic component of political participation, they develop a follow-the-leader model. Political leaders expend effort according to their chance of being pivotal, which depends on the expected closeness of the race (at both state and national levels) and how voters respond to their effort. Structural estimation supports this model. For example, a 1 percent increase in the predicted closeness at the state level stimulates leaders' efforts, which increases turnout by 0.34 percent.
376 citations
TL;DR: It is shown that a firm that sells a bundle of complementary products will have a substantial advantage over rivals who sell the component products individually, and this advantage increases with the size of the bundle.
Abstract: In this paper, we show that a firm that sells a bundle of complementary products will have a substantial advantage over rivals who sell the component products individually. Furthermore, this advantage increases with the size of the bundle. Once there are four or more items, the bundle seller does better than when it sells each component individually. This model helps explain one factor in how Microsoft achieved dominance in the Office software suite against pre-existing and well-established rivals in each component. This paper is a sequel to Bundling as an Entry Barrier (Nalebuff (1999)).
104 citations