Using a Cournot oligopoly model with an endogenous number of firms and evasion of indirect taxes, this paper shows that … more intense competition may have the negative side-effect of eroding tax revenues by increasing tax evasion. This will be … weakly concave or convex and inelastic. The desirable result of more competition, less evasion and higher tax revenues will …

In a model where two competing downstream firms establish an input joint venture (JV), we analyze how different royalty … actual output), the downstream firms’ perceived marginal costs are above the true marginal costs since fixed costs are … incorporated. We find that tougher competition between the JV partners may actually increase channel profit under such a scheme. We …

This paper sheds light on an empirical controversy about the effect of competition on price discrimination. We … introduce individual demand uncertainty into Hotelling’s model of product differentiation and show that firms offer advance … high price. Competing firms offer higher discounts in order to secure a large market share in advance. Our main result …

Power market integration is analyzed in a two countries model with nationally regulated firms and costly public funds …

This paper investigates competition between health insurance companies under different financing regulations. We … consider two alternatives advanced in recent German health care reform discussions: competition by contribution rates (health … contributions) and by fees (health premia). We find that contribution rate competition yields lower company profits and higher …

of winning and losing in a competition on the willingness to seek further challenges. Participants in a lab experiment … compete in two-person tournaments and are then informed of their score and the outcome of the competition. Conditional on the …