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Collusion is widely condemned for its negative effects on consumer welfare and market efficiency. In this paper, I show that collusion may also in some cases facilitate the creation of unexpected new sources of value. I bring this possibility into focus through the lens of a historical episode...
Persistent link: https://www.econbiz.de/10012480205
What is the role of transport improvements in globalization? We argue that the nineteenth century is the ideal testing ground for this question: freight rates fell on average by 50% while global trade increased 400% from 1870 to 1913. We estimate the first indices of bilateral freight rates for...
Persistent link: https://www.econbiz.de/10012464507
distance, and significantly contribute to the higher shipping prices facing the developing world. Markups increase shipping … and perhaps lower incomes. This paper investigates price discrimination in the shipping industry and the role it plays in … determining transportation costs. In the presence of market power, shipping prices depend on the demand characteristics of goods …
Persistent link: https://www.econbiz.de/10012465742
The standard source for pre-WWII global freight rate trends is the Isserlis British tramp shipping index. We think it … the precipitous decline in nominal freight rates before the World War I, but it also extends the series to the 1940s …. Furthermore, our new series is linked to the post-World War II era (documented by David Hummels), so that we can be more precise …
Persistent link: https://www.econbiz.de/10012469171
We study the returns to owning dry bulk cargo ships. Ship earnings exhibit a high degree of mean reversion, driven by industry participants' competitive investment responses to shifts in demand. Ship prices are far too volatile given the mean reversion in earnings. We show that high current ship...
Persistent link: https://www.econbiz.de/10012459415
The expansion of U.S. universities after World War II gained from the arrival of immigrant scientists and graduate … convergence in world science and engineering and a falling U.S. share. But the slowdown of U.S. publication rates in the late 1990 …
Persistent link: https://www.econbiz.de/10012463416
Competition between opposing lobbies is an important factor in the endogenous determination of trade policy. This paper … investigates empirically the consequences of lobbying competition between upstream and downstream producers for trade policy. The … with lobbying competition. Importantly, accounting for lobbying competition also alters substantially estimates of the …
Persistent link: https://www.econbiz.de/10012467312
This paper examines the attitude of Jewish law to competition in light of the economist's understanding of the benefits … of competition and of the beneficiaries from intervention in the competitive process. The punchline of this paper is … simple. Although Judaism has used a whole host of restrictions on competition and has had its share of legislation to promote …
Persistent link: https://www.econbiz.de/10012470880
This paper examines the role of corporate headquarters in allocating scarce resources to competing projects in an internal capital market. Unlike a bank lender, headquarters has control rights that give it both the authority and the incentive to engage in 'winner-picking' -- the practice of...
Persistent link: https://www.econbiz.de/10012473785
shifts. By shocks we mean sudden jolts to the world economy in the form of financial crises and deep recessions, or wars and …
Persistent link: https://www.econbiz.de/10012461059