In this paper, we provide an explanation of why privatization may attract foreign investors interested in entering a regional market. Privatization turns the formerly-public firm into a less aggressive competitor since profit- maximizing output is lower than the welfare-maximizing one. The...

We develop a model of capital tax competition in which imperfectly competitive firms choose both the number of plants they operate and their location. When compared to models with single-plant firms, the presence of multinationals reverses some standard results. First, instead of being...

The explosion of globalization has increased firms incentives to exploit international tax differentials to their benefit. In this paper we consider a simple world with two countries with different market sizes and two multinationals with a division in each country. Both countries use a...

For a large class of additive random utility discrete choice models with income effects, we compute the probability distribution of the compensating variation. We show that the cumulative distribution function only depends on the choice probabilities. Our results are used to compute the...

The task of airline network management is to develop new flight schedule variants and evaluate thm in terms of expected passenger demand and revenue. Given the industry's trend towards global cooperation, this is especially important when evaluating the potential synergies with alliance...

In this paper we examine compensation schemes that prevent a threat of secession by all country's regions and in the same time provide no incentives for citizens' migration within the country. We prove that, under quite general assumptions on the distribution of citizens' preferences, there...

We analyze the two-country model of fiscal competition of Kanbur and Keen (1993) where countries differ in size and use a commodity tax to reach their objective of revenue maximization. Due to fiscal externalities, the non-cooperative outcome is inefficient. Besides, the international optimum...