In a laboratory experiment, the voluntary provision of public goods is investigated when there is probabilistic uncertainty about the monetary return from production of the public good. After group members make their provision decisions, the return is drawn from an exogenously determined...

In this note, we consider the relationship between oil price volatility and firm returns for 560 firms listed on the New York Stock Exchange. Using daily time series data from 2000 to 2008, we find that oil price volatility increases firm returns for the majority of the firms in our sample.

This paper examines the impact of transaction costs on the social efficiency of first-degree price discrimination. Price discrimination requires the producer to expend resources and compels consumers to incur costs. The consideration of producer and consumer transaction costs alters the...

The logit model is the most popular tool for estimating demand in differentiated products markets. However, in its aggregate version, practitioners have to “guess” the size outside good. We propose a way to remove the bias created by an inaccurate guess in simpler versions of the model.

This paper examines how Bertrand competition affects the welfare implications of bundling by a multi-product firm, which is a monopoly over one good and faces a single-product competitor in a second good. We find that the equilibrium bundle price is lower than the sum of the prices of the two...

In this paper we develop a simple model to analyze the effects of exclusive contracts in vertically integrated markets where both the upstream and the downstream market are characterized as oligopolies and manufacturers produce vertically differentiated products. We find that firms prefer to...

In this paper we analyze firms' ability to tacitly collude on prices in software markets. We show that network externality hinders collusion. We also show that firms collude if they value future profits sufficiently.

In this paper I generalize Lazear's model (1986) of retail pricing to the case of a monopolist selling two goods to a potential buyer with unknown valuations. The optimal prices and profit levels are computed for different distributions of valuations using Monte-Carlo simulations. Preliminary...

We show that the result on the existence of a unique Nash perfect equilibrium in two-bidder multi-unit sequential second-price auctions under complete information (as in Krishna, 1993; Katzman, 1999; and Gale and Stegeman, 2001) is not robust in higher dimensional auctions. Using an example featuring...

Chao and Yu (2002) study immigration impact in a host country in the presence of imperfect competition. In their two sector model, when the monopolized non-traded service sector is skilled labor intensive, skilled labor immigration improves the welfare of the host country residents but unskilled...