This paper studies the welfare consequences of a vertical merger that raises rivals costs when downstream competition … is à la Cournot between firms with constant asymmetric marginal costs. The main result is that such a vertical merger can …

remove the ambiguity or bargain and settle privately, they incur enforcement costs. When the parties bargain, a version of … the Coase theorem holds. Despite the additional costs of going to court, other ex post ine.ciencies, and the absence of … especially true in dynamic settings whereby a court decision saves on future enforcement costs. When the parties do not negotiate …

The data indicate that non-wage labour costs in Germany have reached a record high in recent years. From 1972 to 2001 …, the ratio of non-wage labour costs to direct compensation in West German manufacturing industry rose from 55.6 per cent to … 81.2 per cent. The topic of non-wage labour costs is increasingly being discussed among and between the political parties …

are consistent with empirical evidence. First, if firms incur higher sunk costs for marketing, concentration and firm …

predicted in Bayesian equilibrium - costs that are positively correlated lead to steeper supply functions and less competitive … outcomes than do uncorrelated costs. We find that the majority of subjects bid in accordance with the equilibrium prediction … when the environment is simple (uncorrelated costs treatment) but fail to do so in a more complex environment (positively …