A number of recent antitrust cases in the United States, Canada and Europe have involved durable goods manufacturers refusing to supply proprietary parts to independent service organizations, apparently to monopolize the market for repairs of their products. Earlier work suggested that even if...

This paper provides theoretical support for the popular objection to offshoring, whereby firms at home employ services of labor located abroad. In the presence of unemployment, our analysis highlights welfare losses from offshoring—not only for the static case of a fixed stock of capital, but...

A theoretical framework is constructed to derive general conditions under which increased buyer power weakens or strengthens a supplier’s incentive to innovate. These conditions are then applied to two sets of specific models: one on product innovation and the other on process innovation. The...

The objective of this paper is to investigate whether international rivalry will lead to a “race-to-the-bottom” (RTB) in labour standards. We derive the equilibrium levels of labour standards in an environment that is most conducive to a RTB, specifically the Brander and Spencer (1985) model...

We build a unique industry-level panel data set to estimate border effects with respect to U.S.-Canada trade for each year from 1992 to 2005. Estimates from data aggregated at the province/state level yield border effects in the early 1990s that increase slightly and then decline after the...

In this paper we conduct a further analysis on the Brander and Eaton (1984) model of product line rivalry by examining two cases that have not been studied previously. The common feature shared by these two cases is asymmetry between firms. Specifically, we examine situations where either a) the...

We analyze the effects of a merger between two competitors in a Bertrand-Edgeworth model. The merger has no effect on equilibrium prices if a pure strategy equilibrium prevails both before and after the merger. Otherwise, the merger leads to higher prices. In the case where a mixed strategy...