Showing 1 - 10 of 230
I present the following proposal: information revealed during non-cartel investigations by competition law enforcement authorities, such as evaluation of M&As or investigation of monopolization (dominance) conduct, should be directly used to investigate and prosecute cartels. Currently, in...
Persistent link: https://www.econbiz.de/10009147742
We show how temporary ownership by private equity firms affects industry structure, competition and welfare. Temporary ownership leads to strong investment incentives because equilibrium resale prices are determined by buyers incentives to block rivals from obtaining assets. These incentives...
Persistent link: https://www.econbiz.de/10010681223
Paternalism is an attempt to influence individuals’ decisions for their own benefit, even if there are no third parties involved. This seems to contradict normative individualism, which provides the general orientation to our modern democracies. Soft or libertarian paternalism accepts the...
Persistent link: https://www.econbiz.de/10010752158
When politicians are provided with insufficient incentives by the democratic election mechanism, we show that social welfare can be improved by threshold contracts. A threshold incentive contract stipulates a performance level which a politican must reach in order to have the right to stand for...
Persistent link: https://www.econbiz.de/10005196248
We analyze the influence of IMF and World Bank programs on political regime transitions. We develop an extended version … have taken place. We test this unexplored implication of the theory empirically. We find in a world sample from 1970 to … probability of a transition from autocracy to democracy and reduces the probability of democratic survival. …
Persistent link: https://www.econbiz.de/10010583639
Politicians may pander to public opinion and may renounce undertaking beneficial long-term projects. To alleviate this problem, we introduce a triple mechanism involving political information markets, reelection threshold contracts, and democratic elections. An information market is used to...
Persistent link: https://www.econbiz.de/10008833887
We study the contribution of market regulations in the dynamics of the real exchange rate within the European Union. Based on a model proposed by De Gregorio et al. (1994a), we show that both product market regulations in nontradable sectors and employment protection tend to inflate the real...
Persistent link: https://www.econbiz.de/10010604635
This paper analyzes patent pools and their effects on innovation incentives. It is shown that the pro-competitive effects of patent pools for complementary patents naturally extend for dynamic innovation incentives. However, this simple conclusion may not hold if we entertain the possibility...
Persistent link: https://www.econbiz.de/10010701092
This paper offers the first formal economic analysis of carve-outs under airline antitrust im- munity. Carve-outs are designed to limit the potential anticompetitive effects of cooperation by alliance partners in hub-to-hub markets, where they provide overlapping nonstop service. While the paper...
Persistent link: https://www.econbiz.de/10008533998
This paper studies optimal sport league size. League expansion lowers average player quality, reducing fans’ utility in inframarginal locations, while fan utility in new locations rises. Welfare analyses of such expansions must compare these two effects. Using a model where fan demand depends...
Persistent link: https://www.econbiz.de/10005181334