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Does the Behaviour of Myopic Addicts Support the Rational Addiction model?: A Simulation

Frank, Björn - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2002

Becker and Murphy (1988) constructed, in a well-known paper, a model of rational addiction in which people solve a dynamic optimization problem, choose an optimal timepath of drug consumption and thereby maximize lifetime utility. The model leads to the hypothesis that future consumption is a...

Persistent link: https://www.econbiz.de/10005068850

Increasing Block Tariffs in the Water Sector: An Interpretation in Terms of Social Preferences

Meran, Georg; Hirschhausen, Christian von - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2014

Many developing countries around the world apply progressive water tariffs, often structured in the form of discretely increasing block tariffs (IBTs). These tariffs have been criticized in the welfare economic literature due to their perceived inefficiency: many of the prices charged under IBTs...

Persistent link: https://www.econbiz.de/10011266599

R&D and Price Elasticity of Demand

Lucke, Dorothea; Schröder, Philipp J. H.; Schumacher, … - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2004

This note explores the relationship between the price elasticity of demand and the R&D intensity of the product. We … cost of production. Within this framework, sectors with a higher R&D intensity show a lower price elasticity of demand …. This proposition is confirmed by an empirical investigation of export demand for manufactured goods from major …

Persistent link: https://www.econbiz.de/10004963820

Increasing Block Tariffs in the Water Sector: A Semi-Welfarist Approach

Meran, Georg; Hirschhausen, Christian von - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2009

We analyze the properties of progressive water tariffs that are often applied in the sector in the form of discretely increasing block tariffs (IBT). We are particularly interested in water tarification in a poverty context where a subsistence level of water has to be allocated to each...

Persistent link: https://www.econbiz.de/10005068854

A Modified Yardstick Competition Mechanism

Meran, Georg; Hirschhausen, Christian von - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2006

This paper analyzes a modified yardstick competition mechanism (MYC), where the yardstick employed consists of a tariff basket and total costs. This mechanism has a significant information advantage: the regulator "only" needs to observe total costs and output of all firms. The modified...

Persistent link: https://www.econbiz.de/10005026829

Mergers & Acquisitions and Innovation Performance in the Telecommunications Equipment Industry

Gantumur, Tseveen; Stephan, Andreas - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2007

The telecommunications in the 1990s witnessed an enormous worldwide round of Mergers & Acquisitions (M&A). This paper examines the innovation determinants of M&A activity and the consequences of M&A transactions on the technological potential and the innovation performance. We examine the...

Persistent link: https://www.econbiz.de/10004963665

Vertical Integration and Market Foreclosure with Convex Downstream Costs

Baake, Pio; Kamecke, Ulrich; Normann, Hans-Theo - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2001

In a framework with an upstream monopoly and a downstream duopoly, we analyze the impact of convex costs on the downstream level. In constrast to the case of constant marginal costs, vertical integration does not imply complete market foreclosure. While the nonintegrated downstream ¯rm receives...

Persistent link: https://www.econbiz.de/10004963690

The Influence of Collusion on Price Changes: New Evidence from Major Cartel Cases

Blanckenburg, Korbinian von; Geist, Alexander; … - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2010

In this paper, we compare the distribution of price changes between collusive and noncollusive periods for ten major cartels. The first moments focus on previous research. We extend the discussion to the third (skewness) and fourth (kurtosis) moments. However, none of the above descriptive...

Persistent link: https://www.econbiz.de/10008509067

What Causes Cross-Industry Differences of Technical Efficiency?: An Empirical Investigation

Fritsch, Michael; Stephan, Andreas - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2004

Using micro-level panel data of about 35,000 firms from the German Cost Structure Census, we analyze the differences of technical efficiency across industries. Technical efficiency is estimated by firms' fixed effects. One striking result is that the distribution of technical efficiency across...

Persistent link: https://www.econbiz.de/10005068657

Small-Scale Business Survival and Inheritance: Evidence from Germany

Schäfer, Dorothea; Talavera, Oleksandr - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2006

In this paper we investigate whether small-scale businesses face financial constraints that affect their survival. We develop a model of moral hazard in which financial constraints arise endogenously. The model predicts that higher private assets relax financial constraints and have a positive...

Persistent link: https://www.econbiz.de/10005068690