Oblivious equilibrium is a new solution concept for approximating Markov perfect equilibrium in dynamic models of imperfect competition among heterogeneous firms. In this paper, we present algorithms for computing oblivious equilibrium and for bounding approximation error. We report results from computational case studies that serve to assess both efficiency of the algorithms and accuracy of ob...

A c-ary Perfect Factor is a set of uniformly long cycles whose elements are drawn from a set of size c, in which every possible v-tuple of elements occurs exactly once. In the binary case, i.e. where c = 2, these perfect factors have previously been studied by Etzion, [2], who showed that the obvious necessary conditions for their existence are in fact sufficient. This result has recently been ...

The major thesis of this article is that combining the resource-based theory of the firm with Austrian economics and heterogeneous demand theory provides the foundations for a new theory ofcompetition, the resource-ativantage theory. This new theory has macro and public policy implications. Specifically, when compared with neoclassical perfect competition theory. the resource-advantage theory b...

We report on an experiment designed to compare Stackelberg and Cournot duopoly markets with quantity competition. We implement both a random matching and a fixed-pairs version for each market. Stackelberg markets yield, regardless of the matching scheme, higher outputs than Cournot markets and, thus, higher efficiency. For Cournot markets, we replicate a pattern known from previous experiments....

In response to cost changes, prices often rise more strongly or quickly than they fall. This phenomenon has attracted attention from economists, policymakers, and the general public for decades. Many assert that it cannot be explained by standard economic theory, and is evidence for “anti-competitive” behaviour by firms. This paper argues against this conventional wisdom; it shows that simple p...

This paper presents an empirical assessment of the degree of competition within the Jamaican banking sector during the period 1998 to 2009. We employ a dynamic version of the Panzar Rosse Model to estimate market power among the sample of banks that constitute over 90 percent of the banking market. Using the conventional statistical tests, we are unable to reject monopoly/perfect collusion for ...

This paper came out from one of the great questions—systematically avoided by Maritime Economists: “Is shipping industry working in a perfect competition?” We concentrated on dry and liquid cargoes. First, we wrote down theoretical requirements for Perfect competition compared them with actual ones. distinguished “free entry” as most important condition, which however became harder LNG-newbuild...

Private banks often blame state guarantees to distort competition by giving public banks the advantage of lower funding costs. In this paper I show that if borrowers perceive the public bank as supporting economic development, private banks may be able to separate firms by self selection, enter the market, and obtain profits in equilibrium despite their cost disadvantage. The public bank’s comp...