Using a vertically di↵erentiated product model, the paper aims to investigate the e↵ects of economic growth on market provision of product quality. The quality attribute considered is environmental-friendliness of products. Economic growth is modeled as a shift in income distribution. It shows that the e↵ect of economic growth depends on the form it takes. A growth in income that is uniform acr...

While the previous literature on exclusive dealing has been concerned with the question of how exclusive dealing can raise static profits, this paper analyzes the question of how exclusive dealing can be used to predate in a dynamic context. It is shown that exclusive dealing may arise even if it reduces static profits. Exclusivity provisions may not only allow excluding efficient competitors, ...

Entry, Exit and Productivity: Empirical Results for German Manufacturing Industries Using panel data from Spain Farinas and Ruano (IJIO 2005) test three hypotheses from a model by Hopenhayn (Econometrica 1992): (H1) Firms that exit in year t were in t-1 less productive than firms that continue to produce in t. (H2) Firms that enter in year t are less productive than incumbent firms in year t. (...

Article history: Received 3 March 2009 Received in revised form 14 July 2009 Accepted 3 September 2009 Available online 14 October 2009 Tariffs and anti-dumping duties are two important tools used to protect industries from foreign competition and to generate revenue. While the two tools have been studied extensively in separate contexts, little is known about their comparative effects. This pa...

This paper tests the presence of multiple independent submarkets in the Italian motor insurance industry. Independence is motivated by administrative boundaries among provinces and by further locational reasons. We find that the independence effects are sufficient to induce a minimum degree of inequality in the size distribution of firms once submarkets are aggregated. These results are fully c...

This paper analyses market efficiency and the role of the virtual location in digital markets using a data set containing more than 23,000 price observations from the online market for contact lenses as well as detailed information about online retailer and product characteristics. The data allow to implement and test the concept of virtual location. The empirical results reveal evidence for lo...

When the seller of an asset grants a right-of-first-refusal to a buyer, this special buyer has the opportunity to purchase the asset at the best price the seller can obtain from the other potential buyers. We show that the right-of-first-refusal is inefficient, and it benefits the special buyer at the expense of the seller and other buyers. In a private values model, the benefit from granting a...

This paper analyses the growth trends in the Indian Computer Industry for the period 1991-2002. We focus on the significance of size and age on growth of firms and whether or not the law of diminishing returns to learning holds for a high tech industry like computers. An important difference between the computer software and hardware industry is also taken into account: The software industry is...

We consider the impact of job rotation in a directed search model in which …rm sizes are endogenously determined and match quality is initially unknown. A large …rm bene…ts from the opportunity of rotating workers so as to partially overcome loss of mismatch. As a result, in the unique symmetric equilibrium, large …rms have higher labor productivity and lower separation rates. In contrast to th...