Showing 1 - 10 of 52
stay uninsured. In case of a monopoly insurer, exclusion of a provider changes the distribution of consumers who choose not … to insure. Although the foreclosed care provider remains active in the market for the non-insured, we show that exclusion … leads to anti-competitive effects on this non-insured market. As a consequence exclusion can raise industry profits, and …
Persistent link: https://www.econbiz.de/10008491723
We propose a simple theory of predatory pricing, based on scale economies and sequential buyers (or markets). The entrant (or prey) needs to reach a critical scale to be successful. The incumbent (or predator) is ready to make losses on earlier buyers so as to deprive the prey of the scale it...
Persistent link: https://www.econbiz.de/10004973970
This paper studies the impact of income inequality on fiscal conservatism when an increase in inequality affects the bottom portion of income distribution. It is argued that, contrary to what is generally assumed in the economic literature, inequality will then be associated with less, rather...
Persistent link: https://www.econbiz.de/10005136638
privately informed about demand, so firms use quantity discounts as a price discrimination device. However, a dominant firm may …
Persistent link: https://www.econbiz.de/10008784721
I show that exclusive, staggered supply contracts can decrease industry competition when there are economies of scale: buyers pay a higher price to the incumbent seller and the expected value received by an entrant seller is lower when contracts are staggered. Moreover, under staggered contracts...
Persistent link: https://www.econbiz.de/10011083811
Miscoordination of buyers might prevent entry in an industry with an incumbent and a more efficient potential entrant. Buyers' power therefore favours entry by eliminating coordination problems. We also identify a mechanism which facilitates entry: if the potential entrant could credibly offer...
Persistent link: https://www.econbiz.de/10005789109
We introduce non-homothetic preferences into a general equilibrium model of monopolistic competition and explore the impact of income inequality on the medium-run macroeconomic equilibrium. We find that (i) a sufficiently high extent of inequality divides the economy into mass consumption...
Persistent link: https://www.econbiz.de/10005791388
We study a number of mechanisms through which an economy can be stuck at a high unemployment equilibrium because a poor labour market is associated with support for poor policy. These mechanisms are consistent with the relative scarcity of measures that have been undertaken to cure unemployment....
Persistent link: https://www.econbiz.de/10005661453
We investigate possible racial discrimination in the context of discretionary parole release. We develop a rational … system. Further evidence rules out post-release discrimination. We propose different hypotheses to account for the evidence. …
Persistent link: https://www.econbiz.de/10009209827
This paper demonstrates the effects of ethnic and religious diversity on the quality of public spaces. Its identification strategy relies on the exogeneity of public housing allocations in France, and thereby eliminates the bias from endogenous sorting. The paper uses micro evidence of social...
Persistent link: https://www.econbiz.de/10009351515