In this paper, we discuss the formation of collaboration networks among …rms that are located in a circular city. The model is a two-stage game. In the …rst stage, …rms form collaboration links, and in the second stage the …rms engage in price competition. The model in the second stage is a generalization of Salop’s (1979) model. We examine pairwise stability of networks and a stochastic networ...

Antibiotics that inhibit ribosomal function may do so by one of several mechanisms, including the induction of incorrect RNA folding or prevention of protein and/or RNA conformational transitions. Thiostrepton, which binds to the 'GTPase center' of the large subunit, has been postulated to prevent conformational changes in either the L11 protein or rRNA to which it binds. Scintillation proximit...

This paper presents a model of the interaction between corrupt government officials and industrial firms to show that corruption is antithetical to competition. It is hypothesized that a government agent that controls access to a formal market has a self-interest in demanding a bribe payment that serves to limit the number of firms. This corrupt official will also be subject to a detection tech...

Article history: Received 20 October 2011 Received in revised form 11 July 2012 Accepted 12 July 2012 Available online 20 July 2012 In this paper we analyze the relationship between survival, employment growth and firm size in Chile, an economy that has reduced largely its trade barriers in the last three decades. We are particularly interested in analyzing whether the small and medium sized en...

Suppose an intermediary provides a benefit to buyers when they purchase from sellers using the intermediary’s technology. We develop a model to show that the intermediary will want to restrict sellers from charging buyers more for transactions it intermediates. We show that this restriction can reduce consumer surplus and welfare, sometimes to such an extent that the existence of the intermedia...

In this paper, we provide a comprehensive multivariate cointegration analysis of three parts of the steam coal value chain – export, transport and import prices. The analysis is based on a rich dataset of international coal prices; in particular, we combine data on steam coal prices with freight rates, covering the period December 2001 until August 2009 at weekly frequency. We then test whether...

Using Japanese scanner data of transaction prices and sales for more than 1,600 commodity groups from 1988 to 2008, we find a statistically significant negative correlation between the frequency of price changes and the degree of market concentration. We also find that structural factors of a distribution channel are significantly correlated with rigidity in retail prices. Decomposing the frequ...

This paper explores the incentives of a market leader in undertaking merger and acquisition (M&A) of its bankrupt rival firm under financial crisis in an oligopoly model of vertical product differentiation with heterogeneous consumers. I find that, such an M&A only arises if there are cost cutting benefits; else, the market leader would optimally behave like a natural monopoly. I also find that...

We study the percentage of welfare losses (PWL) in models of horizontal and vertical differentiation. In the Hotelling model, we show that PWL depends on the underlying parameters in a non-monotonic way. We also show that PWL can be calculated from market data-locations and market size-except when the market is covered and exhibits maximal product differentiation. PWL can be very large-up to 37...

This paper discusses a model where consumers differ according to one unobservable (preference for quality) and one observable characteristic (location), with nonlinear prices arising in equilibrium. The main question addressed is whether firms should be allowed to practice different nonlinear prices at each location (delivered nonlinear pricing) or should be forced to set a unique nonlinear con...