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We formulate an analytic equilibrium model for simultaneously functioning electricity market and a market for Green Certificates. The major focus of the paper is the effect of market power in a Green Certificate system. One of the main results from the analysis is that the certificate system...
Persistent link: https://www.econbiz.de/10009003095
This paper examines coordination and profit allocation in a profit-center organization using a single transfer price. The model includes compensations, taxes, and minority interests of two divisions deciding on capacity and sales.The analysis covers arm's length transfer prices which are either...
Persistent link: https://www.econbiz.de/10005858524
We examine how executive compensation can be designed to motivate product market collusion. We look at the 2013 decision to close several regional offices of the Department of Justice, which lowered antitrust enforcement for firms located near these closed offices. We argue that this made...
Persistent link: https://www.econbiz.de/10013321555
A number of recent papers have proposed that a pattern of isolated winning bids may be associated with collusion. In contrast, others have suggested that bid clustering, especially of the two lowest bids, is indicative of collusion. In this paper, we present evidence from an actual procurement...
Persistent link: https://www.econbiz.de/10012299673
Firms that develop user innovations for their own use often find these innovations attractive to their competitors. Thus, the user innovator may consider vertical diversification, turning to manufacturing and selling its own innovation while keeping its original business as a user. The question...
Persistent link: https://www.econbiz.de/10013008474
This paper views authority as the right to undertake decisions that impose externalities on other members of the …
Persistent link: https://www.econbiz.de/10010299085
This paper views authority as the right to undertake decisions that have external effects on other members of the organization. Because of contractual incompleteness, monetary incentives are insufficient to internalize these effects in the decision maker's objective. The optimal assignment of...
Persistent link: https://www.econbiz.de/10010333808
This paper views authority as the right to undertake decisions that impose externalities on other members of the …
Persistent link: https://www.econbiz.de/10010334069
Team production is a frequent feature of modern organizations. Combined with team incentives, team production can … create externalities among workers, since their utility upon accepting a contract depends on their team's performance and … therefore on their colleagues' productivity. We study the effects of such externalities in a competitive labor market if workers …
Persistent link: https://www.econbiz.de/10010245995
This paper views authority as the right to undertake decisions that impose externalities on other members of the …
Persistent link: https://www.econbiz.de/10010371079