We consider random wealth of the multiplicative form xy, where x and y are statistically independent random variables. We assume that x is endogenous to the economic agent, but that y is an exogenous and uninsurable background risk. Our main focus is on how the randomness of y affects...

When firms diversify into new markets in spite of the existence of diseconomies of scope, not only firms' profits are affected, but also potential welfare is reduced. Nevertheless, multimarket competition is the outcome of a game when players move simultaneously. A Cournot model is developped...

Firms in the European chemical industry have been among the most successful firms world wide. However, they have had to undertake severe restucturing in order to maintain their market position. These efforts focused in particular on strengthening their innovative capability as product and...

We analyse the question of optimal taxation in a dual economy, when the government is concerned about the distribution of labour income. Income inequality is caused by the presence of sunk capital investments, which creates a .good jobs. sector due to the capture of quasi-rents by trade unions....

We examine how a downstream merger affects input prices and, in turn, the profitability of such a merger under Cournot competition with differentiated products. Input suppliers can be interpreted as ordinary upstream firms, or trade unions organising workers. If the input suppliers are...

Merged firms are typically rather complex organizations. Accordingly, me rger has a more profound effect on the structure of a market than simply reducing the number of competitors. We show that this may render horizontal mergers profitable and welfare – improving even if costs are linear. The...

Europa, Japan und die USA verwirklichen den Schutz von Mensch und Umwelt vor möglichen schädlichen Wirkungen von Chemikalien mit sehr unterschiedlichen Regulierungsstrategien. Da die Regulierungssysteme auch Produktivität und Innovationsbereitschaft der Unternehmen beeinflussen, wird in...

A survey across space and time reveals that leading firms operating in global industries often cluster in one or a few countries. The paper argues that nations differ in how successful they are in a particular industry because coevolutionary processes linking a particular industry and national...

In Germany equal opportunity policy has been conducted from the beginning by forms of regulation, which are currently the subject of governance research. Feminist political science can thus offer important answers to the core questions of this new research perspective. By drawing on the main...