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An experimental study of auctions versus grandfathering to assign pollution permits

Goeree, Jacob K.; Holt, Charles A.; Palmer, Karen; … - Institut für Volkswirtschaftslehre, … - 2009

We experimentally study auctions versus grandfathering in the initial assignment of pollution permits that can be traded in a secondary spot market. Low and high emitters compete for permits in the auction, while permits are assigned for free under grandfathering. In theory, trading in the spot...

Persistent link: https://www.econbiz.de/10005015169

Auctions vs negotiations in public procurement: which works better?

Lalive, Rafael; Schmutzler, Armin - Institut für Volkswirtschaftslehre, … - 2011

Public agencies rely on two key modes to procure goods and services: auctions and direct negotiations. The relative advantages of these two modes are still imperfectly understood. This paper therefore studies public procurement of regional passenger railway services in Germany, where regional...

Persistent link: https://www.econbiz.de/10009283196

Entry in liberalized railway markets: The German experience

Lalive, Rafael; Schmutzler, Armin - Institut für Volkswirtschaftslehre, … - 2006

In Germany, competitive franchising is increasingly being used to procure passenger railway services that were previously provided by a state monopolist. This paper analyzes the 77 tenders that have taken place since the railway reform in 1994. The tenders differ with respect to the size of the...

Persistent link: https://www.econbiz.de/10005700812

All-pay auctions: Implementation and optimality

Schmutzler, Armin; Jönsson, Stefan - Institut für Volkswirtschaftslehre, … - 2013

This paper analyzes how all-pay auctions with endogenous prizes can be used to provide effort incentives. We show that wide classes of effort distributions can be implemented as equilibrium outcomes of such games. We also ask how all-pay auctions have to be structured so as to induce high...

Persistent link: https://www.econbiz.de/10010817271

Exploring the Effects of Competition for Railway Markets

Lalive, Rafael; Schmutzler, Armin - Institut für Volkswirtschaftslehre, … - 2005

This paper studies the effects of introducing competition for local passenger railway markets in the German state of … Baden-Württemberg. We compare the evolution of the frequency of service on lines that were exposed to competition for the … influence on the frequency of service. Our results further suggest that the effects of competition may depend strongly on the …

Persistent link: https://www.econbiz.de/10005566321

Fairness, Errors and the Power of Competition

Fischbacher, Urs; Fong, Christina M.; Fehr, Ernst - Institut für Volkswirtschaftslehre, …

One of the most basic questions in economics concerns the effects of competition on market prices. We show that the … neglect of both fairness concerns and decision errors prevents a satisfactory understanding of how competition affects prices …. We conducted experiments which demonstrate that the introduction of even a very small amount of competition to a …

Persistent link: https://www.econbiz.de/10005463516

Attention competition

Hefti, Andreas M. - Institut für Volkswirtschaftslehre, … - 2011

I present a game-theoretic model where economic competition and attention competition are interdependent. On the one … price competition among all perceived firms. On the other hand attracting attention involves costs which must be covered by … the earnings from competition. It is the task of this paper to clarify the consequences of such an interdependence between …

Persistent link: https://www.econbiz.de/10009321753

The Macroeconomics of Model T

Foellmi, Reto; Wuergler, Tobias; Zweimüller, Josef - Institut für Volkswirtschaftslehre, … - 2009

We study a model of endogenous growth where firms invest both in product and process innovations. Product innovations (that open up completely new product lines) satisfy the advanced wants of the rich. Subsequent process innovations (that decrease costs per unit of quality) transform the...

Persistent link: https://www.econbiz.de/10008474158

Income Distribution and Demand-induced Innovations

Foellmi, Reto; Zweimüller, Josef - Institut für Volkswirtschaftslehre, …

We utilize Schmookler’s (1966) concept of demand-induced invention to study the role of income inequality in an endogenous growth model. As rich consumers can satisfy more wants than poor consumers, both prices and market sizes for new products, as well as their evolution over time, are...

Persistent link: https://www.econbiz.de/10005627897

Merger Negotiations and Ex-Post Regret

Gaertner, Dennis; Schmutzler, Armin - Institut für Volkswirtschaftslehre, … - 2006

We consider a setting in which two potential merger partners each possess private information pertaining both to the profitability of the merged entity and to stand-alone profits, and investigate the extent to which this private information makes ex-post regret an unavoidable phenomenon in...

Persistent link: https://www.econbiz.de/10005700826