This paper develops a general theory of aggregation in inefficient economies. We provide non-parametric formulas for …%, increasing the economy-wide cost of monopoly distortions by two orders of magnitude compared to the famous 0.1% estimate by …

aftermarkets? In this paper we explore a number of models characterized by either competition or monopoly in the new-unit market …, and show that a variety of behaviors that hurt competition in aftermarkets can, in fact, be efficient responses to …

absolute margin. We derive these results in both a monopoly model and a variety of different competitive models. We conclude …

frictions, such as taxicabs, trucks and bulk shipping. We illustrate the impact of two externalities: the well-known thin …/thick market externalities and what we call pooling externalities. We characterize analytically the conditions for efficiency, show …

This paper sets up a microeconomic theory of labor unions. It discusses their formation and goals, their hierarchical … structure, and the nature of rent distribution. The theory provides predictions for the probability that an industry or …

We develop a framework to study analytically and quantitatively relentless cross-border casino competition with social …-disorder and income-creation externalities. Two bordering casinos compete with each other for the external source of demand of …-border gambling. By calibrating the model to fit the Detroit-Windsor market, we find that cross-border competition induces both cities …