Showing 1 - 10 of 51
Standard macroeconomic models possess the undesirable feature that people stop working in the long run. Assuming standard parameters, the neoclassical model predicts that 2% of annual productivity growth leads to a 99% decline in the labor supply after 624 years. Yet, this contradicts the fact...
Persistent link: https://www.econbiz.de/10010933281
This paper characterizes a class of regularly varying production functions with an asymptotic elasticity of substitution equal to one. In particular, it is shown that these functions asymptotically approximate the Cobb–Douglas form. The results generalize and unify existing results in the...
Persistent link: https://www.econbiz.de/10011041696
In a Barro-type economy with exogenous consumption aspirations, raising income taxes favors growth even in the presence of lump-sum taxes. Such a policy is compatible with the behavior of private consumption, income taxes and growth rates observed in actual economies.
Persistent link: https://www.econbiz.de/10010576445
This paper analyzes the unilateral choices of application compatibility by platforms and the endogenous affiliations of two different groups (content providers and users). We find a novel result that for both platforms to unilaterally choose application compatibility is not an equilibrium unless...
Persistent link: https://www.econbiz.de/10011263393
This paper extends a discrete-choice model of differentiated product demand to consider consumer heterogeneity in dynamic games. Our approach applies to games involving both multi-product firms and static price competition.
Persistent link: https://www.econbiz.de/10011263409
This paper examines the effects of obtaining a strategic advantage of becoming the leader in the market on insiders’ incentives to merge and consumer welfare. We show that being the market leader is privately profitable for the merging insiders. We also show that the leading merger would...
Persistent link: https://www.econbiz.de/10011263415
This paper investigates the impacts of competition structures on firms’ incentives for adopting strategic environmental corporate social responsibility (ECSR) certified by a Non-Governmental Organization. We show that, to induce firms to adopt certified ECSR, the certifier will set a standard...
Persistent link: https://www.econbiz.de/10011263444
This paper examines the welfare implication of banning price discrimination in the intermediate goods market in which a monopolistic supplier contracts with asymmetric downstream retailers. We demonstrate that the supplier has a strong incentive to manipulate the interdependent demand structure...
Persistent link: https://www.econbiz.de/10011208462
We re-examine the view that a ban on price discrimination in input markets is particularly desirable in the presence of buyer power. This argument crucially depends on an inverse relationship between downstream firms’ profits and the uniform input price. Assuming different input efficiencies...
Persistent link: https://www.econbiz.de/10011189534
A new theory of loss-leader pricing is provided in which firms advertise low (below cost) prices for certain goods to signal that their other unadvertised (substitute) goods are not priced too high. The theory is applied to the pricing of upgrades. The results contrast with most existing...
Persistent link: https://www.econbiz.de/10010729458