Monopoly power with a short selling constraint

End pharmacists' monopoly on selling certain drugs.

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Is the Copyright Monopoly a Best-Selling Fiction?

This paper attempts to determine the impact of copyright on the prices of books, which is a task that has not, to my knowledge, been undertaken before. Recent prices of best-sellers written between 1895 and 1940, some with copyright and some without, are compared. One set of empirical findings based on typical regressions indicate that the prices of copyrighted works do not appear higher than t...

Another Perverse Effect of Monopoly Power

We show that the simple fact that a monopolist sells a good in units which are indivisible may well induce him to select a quality for his product which is not the highest one, even if no cost of any sort is attached to quality improvement. ∗CORE, université catholique de Louvain †CEREC, Facultés universitaires Saint-Louis & CORE, université catholique de Louvain 1. Even leaving aside price dis...

THE SOCIAL COST OF MONOPOLY POWER By

Portfolio Optimization with Many Assets: the Importance of Short-selling

We investigate the properties of mean-variance efficient portfolios when the number of assets is large. We show analytically and empirically that the proportion of assets held short converges to 50% as the number of assets grows, and the investment proportions are extreme, with several assets held in large positions. The cost of the no-shortselling constraint increases dramatically with the num...