Horst Raff

TL;DR: This paper examined how free-trade agreements and customs unions affect the location of foreign direct investment (FDI) and social welfare, taking into account that governments may adjust taxes and external tariffs to compete for FDI.

TL;DR: In this paper, the authors examine how trade liberalization affects the innovation incentives of firms and what this implies for industry productivity, and develop a reciprocal dumping model of international trade with heterogeneous firms and endogenous R&D.

TL;DR: In this paper, the authors examine the choice of FDI mode and show that the profitability of greenfield investment influences this choice not only directly, but also indirectly since it determines the outside option of potential acquisition targets and joint venture partners.

TL;DR: The alternating offers bargaining game with two pies and incomplete information has a bargaining sequential equilibrium where the "strong" type of the informed player restricts his offer to one pie, leaving it to the other player to make an offer on the second pie.

TL;DR: In this paper, an oligopoly model with heterogeneous firms is used to examine how an industry adjusts to rising import competition, and the model predicts that in the short run the least efficient firms in the industry become inactive, surviving firms face a fall in output, mark-ups and profits, and average productivity of survivors increases.