A familiar result in the literature on mergers is that the principal beneficiaries from such activity are the firms which are excluded from participation. The possible existence of this ‘merger paradox’ contrasts strongly with the frequently expressed view that merger is anti-competitive. This paper examines the question within the context of a model of spatial competition in which firms choose...

In many household surveys, geographically clustered households report unit values of foods, which when corrected for quality effects and for measurement error, indicate the underlying spatial variation in prices, and can be matched to variation in demand patterns so as to estimate price elasticities. A 1979 household survey from the Cote d'Ivoire is used to estimate price elasticities for beef,...

Firms’ fob prices can vary depending on the distance to the destination market for two reasons: (i) firms can charge a different markup (ii) they can offer a product with slightly different quality. In theoretical models, distance generally covers transport costs. This paper shows that the response of firms’ prices to changes in distance to the destination market depends on the formulation of t...

Restructuring of power system has faced this industry with numerous uncertainties. As a result, transmission expansion planning (TEP) like many other problems has become a very challenging problem in such systems. Due to these changes, various approaches have been proposed for TEP in the new environment. In this paper a new algorithm for TEP is presented. The method is based on probabilisti...

In this paper we aim to explain intuitively heterogeneous firms’ optimal location decisions in a simple spatial market. To do so, we present and solve a four-stage game of entry, location, pricing and consumption in a spatial price discrimination framework with arbitrarily many heterogeneous firms. We provide a unique equilibrium outcome without imposing restrictions on the distribution of marg...

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In this paper, we aim to model the vertical relation between retailers and suppliers in the food industry whereby retailers exercise seller power in their relation with consumers and buyer power in their relation with producers. We then evaluate the degree of price transmission, relative to the perfectly competitive benchmark, from the farm to the retail sector assuming a supply shock. With the...