We study welfare effects of horizontal mergers under a successive oligopoly model and find that downstream mergers can increase welfare if they reduce input prices. The lower input price shifts some input production from cost-inefficient upstream firms to cost-efficient ones. Also, the lower...

In recent years, the cost to merchants of accepting credit cards has risen without any corresponding new benefits. This trend has sparked a wide-ranging struggle between merchants and banks, as merchants have begun to seek greater control over payment systems. The conflict is playing itself out...

Many recent game-theoretic models suggest that with asymmetric information it can be profitable for firms to acquire a reputation for toughness to discourage later entry. We identify institutional arrangements which firms must undertake if predatory commitments are to be credible. For example,...

In recent years, the cost to merchants of accepting credit cards has risen dramatically without a corresponding increase in the benefits. This trend has sparked a wide-ranging struggle between merchants and banks, as merchants have begun to seek methods for limiting payment costs. The conflict...

The U.S. Bankruptcy code changed dramatically with the passage of The Bankruptcy Abuse Prevention and Consumer Protection Act Of 2005. This act increased the costs and decreased the benefits of bankruptcy to consumers. Supporters of the law claimed that it would benefit consumers as well as...

The effects of antitrust policy are illuminated in an extensive series of enforcement actions against Microsoft. As antitrust intervention promises to benefit a broad spectrum of publicly traded firms, stock market reactions to enforcement quot;eventsquot; constitute forecasts of the net...