We examine the effects of restructuring electricity markets on capacity investments, retail prices and welfare when demand is uncertain. We study the following market configurations: (i) integrated monopoly, (ii) integrated duopoly with wholesale trade, and (iii) separated duopoly with wholesale...

Danish ready-mixed concrete is produced in regional oligopolies. Firms rely on price discrimination through secret discounts. The antitrust authority interprets this as lack of competition and has decided to activate its chief weapon against dormant competition: To make the market more...

The aim of the paper is to examine the relationship between R&D capital and productivity using micro data for Danish manufacturing firms. We account for the influence of factors such as ownership, innovative characteristics and source of funding. The return to accumulated R&D capital is...

We analyze the extent to which visits to a magazine's companion website affects total circulation, subscription, kiosk sales and foreign sales using Granger causality tests on the basis of monthly data for the German magazine market spanning the period January 1998 to September 2005. We find...

The rapid and continuous growth in the US in the 1990s and the simultaneous boom in the IT industry created the concept "The New Economy". What connects the two phenomena is that the IT industry alone is considered productive, and increased productivity in other industries, as a result of...

It is a commonplace to assume that competition within an industry reduces firms’ profit margins and production inefficiency and increases the effort and resources firms spend on innovations. Although theoretically there are good reasons to believe that competition will increase the...

This paper uses data on the population of German magazines for the period 1973 to 2004 to show that, contrary to conventional wisdom, there is little evidence for magazine readers disliking advertising. Many magazines in fact have readers who appreciate advertising. The degree of appreciation...

I derive a model of profit maximization for a print media firm with upfront advertising pricing. The model is estimated using detailed quarterly data on German women's magazines observed between I/1994 and IV/2004. Main empirical results are that (i) cover price increases lead to substantial...

We characterize the interplay between firms’ decision in terms of product standardization and the nature of their ensuing market behaviour. We prove the existence of a non-monotone relationship between firms’ decision at the product stage and their intertemporal preferences.

The consequences for market performance of publicity of anticompetitive behaviour and prohibition of anticompetitive behaviour combined with punishment of violators are compared, in a model that also allows for the possibility of entry. Implications for Danish and for international competitive...