The analysis of strategic interactions in markets and firms is at the core of this area of specialization of Labex MME-DII. Researchers study the interaction between firms in different types of markets, the interactions between firms and customers as well as the internal organization of firms. Many of these interactions are characterized by information deficiencies: information acquisition might be costly, one party might possess more information than the other, the actions of some parties might not be observable. Costly information acquisition is at the core of problems related to the adoption of new products and innovation. Researchers at Labex MME-DII try to identify the optimal experimentation and exploitation strategies when agents obtain imperfect information about each other’s actions and outcomes. The design of patent laws has to take into account such strategic considerations to set the right incentives for investment in R&D. The study and the design of optimal contracts and incentive schemes within the firm is a second important area of research at the Labex MME-DII. An interesting aspect of this research is putting the theory to the test in a laboratory experiment. A third domain is the analysis of the impact of informational asymmetries on market outcomes, specifically in the context of financial markets where financial analysts may choose whether or not to acquire and disclose information about the future performance of the assets. Finally, the analysis of specific market structures, such as, platform industries (e.g., smartphone or payment card industries) which are becoming more prevalent, is an area of growing interest.
Topics in Firms, Markets and Information:
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