We consider a duopoly with horizontally differentiated firms, where firms decide the long-term plans (locations) in addition to short-term issues (prices). As in Bárcena-Ruiz and Casado-Izaga (2014), we introduce a third entity in the city by considering the presence of a policymaker that...

We study the effects of cooperative wage setting in industries that use two different types of labor. In particular, we consider a two-stage game where firms hire non-specialized workers in a perfectly competitive labor market and specialized workers that are more productive and expensive, but...

The role of multinational firms in the world economy is widely recognized. Multinationals’ activities produce various effects in the host countries, particularly in areas such as: economic growth, technology and innovatory capacity, employment, market structure, performance and business...

We characterize collusion sustainability in markets where demand growth may trigger the entry of a new firm whose efficiency may be different from the efficiency of the incumbents. We find that the profit-sharing rule that firms adopt to divide the cartel profit after entry is a key determinant...

We propose a profit-sharing rule that maximizes sustainability of cartel agreements. This rule is such that the critical discount factor is the same for all the firms. If a cartel applies this rule, then asymmetries among firms may not hinder collusion (contrarily to the typical finding in the...

This paper proposes a general framework to study the sustainability of collusion in markets where demand growth (although deterministic) is not restricted to occur at a constant rate and may trigger future entry. It is shown that, typically, entry occurs later along the collusive path than along...

In a two-sided market duopoly, we investigate the effects of delegating long run restrictive and unrestrictive decisions to managers by the platforms' owners, the effects of the platforms' ownership establishing long run decisions without managers and the impacts of asymmetric regimes between...

We study a duopoly with differentiated and substitutable goods composed of one consumer-friendly firm and one pure-profit maximizing firm. In such a duopoly, a regulatory authority intervenes to control the degree of altruism of the consumer-friendly firm. We conclude that under quantity...

The Portuguese banking sector has been recently subjected to important structural changes. The diversification of the supply of financial services, the specialization phenomena and the growing importance of new technologies are changing the sector dramatically. A profit perspective is used to...

This paper reexamines the relationship between geographic concentration of an industry (localization) and establishment scale. We use an approach that builds on Ellison & Glaeser’s (1997) dartboard location model to measure localization. Contrary to Holmes & Stevens’s (2002) pioneering...