Recent theoretical work has shown that the incentive to target rival firms' customers with low prices can increase price discrimination, and that the strength of the incentive depends on a firm's market position. Using data on Swedish newspaper subscriptions, we find strong support for these...

Many oligopoly theories predict a positive correlation between market size and the equilibrium number of firms and some also imply that competition is more intense in larger markets. The authors test these predictions on a sample of driving schools in 250 Swedish regional markets by estimating...

To what extent are capital investments sunk costs? This question is addressed by examining the salvage values of discarded metalworking machinery. Even though such assets are expected to be non-specific, many discarded assets are scrapped rather than sold on second-hand markets. Econometric...