Showing 1 - 10 of 92
This paper presents a new method for estimating discrete games based on bounds of conditional choice probabilities. The method does not require solving the game and is scalable to models with many firms and many discrete decisions. We apply the method to study merger effects on firm entry and...
Persistent link: https://www.econbiz.de/10013334365
Industries with significant scale economies or learning-by-doing may come to be dominated by a single firm. Economists have studied how likely this is to happen, and whether it is efficient, using models where buyers are price or quantity takers, even though these industries are often also...
Persistent link: https://www.econbiz.de/10014528398
We document the effects of a comprehensive set of US retail mergers. On average, prices increase by 1.5% and quantities decrease by 2.3%, with significant heterogeneity in outcomes across mergers. Price changes correlate with the screens codified in the Horizontal Merger Guidelines. Through a...
Persistent link: https://www.econbiz.de/10014250141
We study the effectiveness of firms' compliance programs by conducting a field experiment in which we disclose to a subset of Japanese firms that the firm is potentially engaging in illegal bid-rigging. We find that the information that we disclose affects the bidding behavior of the treated...
Persistent link: https://www.econbiz.de/10014528387
Auctioneers suspecting bidder collusion often lack the formal evidence needed for legal recourse. A practical … alternative is to design auctions that hinder collusion. Since Abreu et al. (1986), economic theory has emphasized imperfect … monitoring as a constraint on collusion, but evidence remains scarce on whether: (i) information frictions meaningfully limit …
Persistent link: https://www.econbiz.de/10015398120
to collusion. Using an explicit measure of labor market collusion from unsealed court evidence, we find that the … probability of collusion between two firms increases by 12 percentage points after the onset of common leadership, compared to a …
Persistent link: https://www.econbiz.de/10015409899
Firms tend to compete more aggressively in financial distress; the intensified competition in turn reduces profit margins, pushing themselves further into distress and adversely affecting other firms. To study such feedback and contagion effects, we incorporate strategic competition into a...
Persistent link: https://www.econbiz.de/10013537735
In this paper, we provide a theoretical characterization of the welfare effects of buyer and seller power in vertical relations and introduce an empirical approach for quantifying the contributions of each channel to deadweight loss. Our model accommodates both monopsony distortions from buyer...
Persistent link: https://www.econbiz.de/10015195017
Drug patent litigation settlements containing brand-to-generic "reverse payments" are a decades old antitrust concern that has been estimated to cost drug purchasers billions of dollars per year. Most estimates of the harm rely on the Federal Trade Commission's calculation that such payments...
Persistent link: https://www.econbiz.de/10015145147
We study the extent to which collusion can explain the under-provision of clean sanitation technologies in developing … the extent of competition. Consistent with the collusion hypothesis, we find that most bidders systematically avoid …
Persistent link: https://www.econbiz.de/10013388870