In this chapter our attention turns to horizontal merger policy. The Sherman Act`s prohibition on "contracts, combinations, and conspiracies in restraint of trade," whose application to price fixing we discussed in Chapter 2, also applies to horizontal mergers, but with an important difference:...

Imperfect competition in labor markets can lead to efficiency losses and lower aggregate output. In this paper, we study whether differences in competitiveness of labor markets can help explain differences in GDP per capita across countries. We structurally estimate a model of oligopsony with...