We propose an equilibrium model to study the impact of short-sale constraints on market prices and liquidity in imperfectly competitive markets where market makers have significant market power and are averse to inventory risk. We show that shortsale constraints decrease bid because of the market power and increase ask because of the risk aversion. Our model can therefore help explain why short...

The de-collectivization of Vietnamese agriculture was a crucial step in the country’s transition to a market economy. The assignment of land-use rights had to be decentralized, and local cadres ostensibly had the power to capture this process. We assess the realized land allocation against explicit counter-factuals, including the allocation implied by a competitive market-based privatization. D...

This paper estimates the importance of network effects in the market for Yellow Pages. I estimate three simultaneous equations: consumer demand for usage of a directory, advertiser demand for advertising and a publisher’s first-order condition (derived from profitmaximizing behavior). Estimation shows that advertisers value consumer usage and that consumers value advertising, implying a network...

This paper investigates the economic implications of storage behavior under imperfect competition. It evaluates the economic dynamics implied by a storage firm under alternative market structures. This includes perfect competition as well as imperfect competition under Cournot behavior. The conceptual analysis is used to specify and estimate a model of storage behavior, with an econometric appl...

In this paper, a new structure for reactive power market is presented. Considering reactive power losses caused by active power flow in the reactive power market is the main purpose of this paper. Hence, this study tries to improve reactive power market and create fair competition in reactive power generation.

This paper presents a model in which a firm attempts to gain market power by pricing above the competitive market price and simply trying to persuade illinformed consumers not to search for other lower priced firms. Fictitious price comparisons, or false sale signs could be used in this way to deceptively and profitably deter consumer search. A simplified model shows how this mechanism could ex...

The aim of this study is to provide an empirical methodology for the estimation of market power of individual banks. The new method employs the well-known model of Panzar and Rosse (1987) and proposes its estimation using the local regression technique. Thus, a number of restrictive assumptions regarding the properties of the production function of banks are relaxed, while the method proves suc...

In the course of the last years, the liberalization of electricity markets induced the creation of power exchanges which allow participants to the trade electricityrelated products in a competitive manner. Yet, in today’s market structures small-scale entities like photovoltaic plants or households are prevented from direct participation because of capacity-related barriers to entry. To address...

The general perception that laboratory markets yield efficient competitive outcomes seems to contradict the emphasis on market imperfections that pervades much of the theoretical work in industrial organization. This apparent contradiction is resolved by considering the effects of trading institutions: Competitive outcomes are indeed typical in laboratory markets where trading follows the "doub...