We adapt the exclusion model of Choné and Linnemer (2014) to reflect the notion that dominant firms are unavoidable trading partners. In particular, we introduce the share of the buyer’s demand that can be addressed by the rival as a new dimension of uncertainty. Nonlinear price-quantity...

We study the exclusionary properties of nonlinear price-quantity schedules in an Aghion-Bolton style model with elastic demand and product differentiation. We distinguish three regimes depending on whether and how the price of the incumbent good is linked to the quantity purchased from the rival...

This article aims at understanding the interplay between pension schemes and tax instruments. The model features extensive labor supply in a stationary environment with overlapping generations and perfect financial markets. Compared with the reference case of a pure taxation economy, we find...

We model asymmetric information arising from physician agency, and its effect on the design ofpayment and healthcare quantity. The physician-patient coalition aims to maximize a combinationof physician profit and patient benefit. The degree of substitution between profit and patient benefitin...

A number of countries have recently implemented variants of a negative incometax, to push the less skilled members of the economy into work, or to make workpay in comparison with welfare benefits. In most cases, these measures haveresulted for the concerned groups in a decrease of the tax rates,...

The analysis of horizontal mergers hinges on a tradeoff between unilateral effectsand efficiency gains. The article examines the role of uncertainty (on theefficiency gains) in this tradeoff. Common wisdom is that the antitrust authoritiesshould be very cautious about random gains. Our results...