We investigate expectation formation in a controlled experimental en-vironment. Subjects are asked to predict the price in a standard asset pricingmodel. They do not have knowledge of the underlying market equilibrium equa-tions, but they know all past realized prices and their own predictions....

This discussion paper led to a publication in <A href="http://www.sciencedirect.com/science/article/pii/S0095069611001380">'Journal of Environmental Economics and Management'</A>.<p>Water markets with market power are analysed as multi-market Cournot competition in which the river structure constrains access to local markets and limited resources impose capacity constraints....</p></a>

This discussion paper resulted in a publication in <A HREF="http://www.sciencedirect.com/science/article/pii/S019126151200063X#"<I>Transportation Research B: Methodological</I></A>, 2012, 46(8), 971-983.<P> We study road supply by competing firms between a single origin and destination. In previous studies, firms simultaneously set their tolls and capacities while taking the actions...</p></a>

In this paper we set out the welfare economics based case for imposing cartel penalties on the cartel overcharge rather than on the more conventional bases of revenue or profits (illegal gains). To do this we undertake a systematic comparison of a penalty based on the cartel overcharge with...