firms, elasticity of substitution between goods and degree of transparency on equilibrium prices. The main result is that … the following 'common wisdom' is incorrect: more transparent markets always feature lower prices, higher consumer welfare …

functions receives zero profits and therefore no informational rents. If first best welfare is monotone in the efficiency …

Theoretical IO models of horizontal mergers and acquisitions make the critical assumption of efficiency gains. Without … efficiency gains, these models predict either that mergers are not profitable or that mergers are welfare reducing. A problem … here is the empirical observation that on average mergers do not create efficiency gains. We analyze mergers in a model …

distribution into three main components: efficiency, amenities, and frictions. Higher efficiency and better amenities lead to … MSAs in the United States, we parametrize the model and empirically estimate efficiency, amenities and frictions …

an attempt to manipulate security prices to their benefit. This leads to incomplete risk-sharing, despite the existence … of complete markets and the absence of aggregate risk. When a fiscal union centralizes fiscal policy, security prices can …