This article shows how horizontal industry integration can arise from transferable asymmetry of technologies and endowments. The Nash bargaining solution suggests that greater technological diversity among coordinating parties yields greater gains from horizontal integration. The framework fits...

This article shows how horizontal industry integration can arise from transferable asymmetry of technologies and endowments. The Nash bargaining solution suggests that greater technological diversity among coordinating parties yields greater gains from horizontal integration. The framework fits...

Typical econometric production practices under duality ignore the source of disturbances. We show that, depending on the source, a different approach to estimation is required. The typical approach applies under errors in factor input measurement rather than errors in optimization. An approach...

"Numéraire" prices that are measured with error create challenges for econometric estimation. A straightforward approach for a model with linear input demands, such as generated from a quadratic normalized profit function, is proposed where the "numéraire" price is measured with error....

A price discrimination model is proposed to explain why firms provide extraneous information on Internet sites selling agricultural inputs. Whether an informative site is offered depends on price discrimination potential, which depends on how much farmers reveal heterogeneity by Internet...

Dual production specifications derived under certainty are typically randomized for econometric purposes with ad hoc error specifications. This article shows that such approaches can cause integrability conditionsto fail. In particular, if errorsin input demands represent errorsin optimization...