The influential Scherer and Ross text (1990, p. 411) states that the “main question” in empirical industrial organization in the latter part of the twentieth century is Bain’s (1951) “collusion” or “agreement” hypothesis versus Demsetz’s (1973) “superior firm” hypothesis. Prior to the...

United States antitrust merger analysis has recently focused on simulating the unilateral effects of mergers. We develop a model to simulate the unilateral price increase from a merger in an auction market. We illustrate our results in the context of hospital mergers in the U.S., and calibrate...

The Old Empirical Industrial Organization (OEIO) used OLS to analyze the correlation between concentration and industry profits. There are two competing hypotheses--collusion (Bain 1951) or superior competitors (Demsetz 1973). The New Empirical IO (NEIO) undertakes industry specific structural...

We model “dumping” as price discrimination assuming profit maximization by Korean firms prior to OECD and WTO membership. We show that the ratio of domestic prices, PD, to export prices, PX, can be derived from domestic and export price-cost margins. Accounting mismeasurements of costs...

A structural event study methodology accounts for the interaction of two M&A effects: synergy (total value) and dominance (bargaining power). This interaction jointly (simultaneously) determines the parties' abnormal returns. An application in the context of corporate governance illustrates our...

The influential Scherer and Ross text (1990, p. 411) states that the main question in empirical industrial organization in the latter part of the twentieth century is Bains (1951) collusion or agreement hypothesis versus Demsetzs (1973) superior firm hypothesis. Prior to the Federal Trade...