The purpose of this paper is to examine the interplay between public and private health care. We consider a situation where public and private health care are perfect substitutes, and the government sets the wage in the public sector and the subsidy to (or taxation on) the private sector. Each...

The received literature concludes that if scale economies are absent, mergers are often unprofitable under Cornot competition, but always profitable under Bertrand. In a linear demand model with three firms initially, where there are two merger candidates, we show that results will change if we...

In a setting with two differentiated producers and identical retailers, we analyzed whether the producers will have a distribution system with one or several retailers. In contrast to the existing literature, we allow for full foreclosure under both types of distribution systems.

Retail chains are observed in many industries. The question addressed here is whether retail chains can exploit buyer power by excluding some brands. In a theoretical model with two differentiated producers and a single retailer, we show that a retailer will require exclusivity (exclude a brand)...

Two producers delegate sales of differentiated products to common retailers, each with a monopoly position. Each producer can offer either a linear or a two-part tariff. In the single period game each producer's dominant strategy is to use a two-part tariff. If the two producers' products are...

We examine how a merger affects wages of unionized labour and, in turn, the profitability of a merger under both Cournot and Bertrand competition. If unions are plant-specific, we find that a merger is more profitable than in a corresponding model with exogenous wages. In contrast to the...

Will reduced trade barriers increase or reduce the chance that the producers in an international duopoly reach a collusive agreement about not exporting into each others domestic markets? Reduced trade costs increase the short-run gains from deviating from a collusive agreement, but can also...