quantities in Cournot competition. In addition to profits, firms can choose to care for the surplus of either all consumers (CSR …) or their own customers only (CO), and if so, to what extent. We find that firms prefer to care for all consumers …

prices, market shares, and profits. Our demand estimation results show large differences in brand loyalty, and switching … costs across customer income segments and beer brands. Our supply estimation results show that the low-quality firm … experiences a higher competitive pressure on price since low-quality consumers are more price sensitive and switch more easily to …

Applying the theory of yardstick competition to the schooling system, we show that it is optimal to have central tests … of student achievement and to engage in benchmarking because it raises the quality of teaching. This is true even if … measured so that it becomes comparable, teachers will increase their effort. The theory is tested using the German PISA-E data …

Carlo experiments, where we also study the estimation of the aggregate effects of micro and macro shocks. The paper … concludes with an empirical application to consumer price inflation in Germany, France and Italy, and re-examines the extent to …

empirical implications are tested using a large panel of jurisdictions in Germany, which have discretion in setting the local …