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We analyse a stylized model of the world grain market characterized by a small oligopoly of traders with market power … on both the supply and demand side. Crops are stochastic and exporting countries can impose export tariffs to protect … domestic food prices. Our first result is that export tariffs are strategic complements and that for poor harvests equilibrium …
Persistent link: https://www.econbiz.de/10010230311
This paper provides a novel rationale for the regulation of market size when heterogeneous firms compete. A regulator seeks to maximize total welfare by choosing the number of firms allowed to enter the market, e.g. by issuing a certain number of licenses. Opening up the market for more firms...
Persistent link: https://www.econbiz.de/10012108481
This paper studies the effect of forward contracts on the stability of collusion among firms, competing in supply functions on the spot market. A forward market can increase the range of discount factors which allow to sustain collusion. On the contrary, collusion is destabilised when a...
Persistent link: https://www.econbiz.de/10011968922
We conduct a series of Cournot duopoly market experiments with a high number of repetitions and fixed matching. Our treatments include markets with (a) complete cost symmetry and complete information, (b) slight cost asymmetry and complete information, and (c) varying cost asymmetries and...
Persistent link: https://www.econbiz.de/10014487322
This study provides evidence on how German multinational firms have restructured their service activities around the recent crisis. Making use of new micro-level data on service imports of German multinationals from 2002-2008, we assess the determinants of service offshoring along the extensive...
Persistent link: https://www.econbiz.de/10009674851
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Many studies use tariffs to measure changes in trade policy. This paper shows that standard sources for tariffs suffer from substantial measurement error due to misreporting and the resulting false imputation: Countries fail to report tariffs every year and missing data are more prevalent for...
Persistent link: https://www.econbiz.de/10014492124
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