Competition and consumer search costs can lead to price dispersion in an oligopoly. IO research has long identified the existence of search costs and estimated their distribution and is now beginning to study which consumers sit where in the distribution. This paper argues for a view of consumer...

This paper estimates the social costs of imperfect market structures (e.g., Oligopoly and Monopoly) in the Peruvian Manufacturing Sector for the period 1990-1996. These costs are computed using the simple Harberger (1954) method adjusted by Tello's model (1995). The method is applied at the...

Products with negative externalities are often subject to regulations that limit competition. The single-product case may suggest that it is irrelevant for aggregate welfare whether output is restricted via corrective taxes or limiting competition. However, when products are differentiated...

In imperfectly competitive markets, a producer-employer firm can be considered monopolist-monopsonist, facing downward sloping residual demand for product and upward sloping residual supply for labour. Firms can thereby exercise both product price markup and wage markdown powers. To study market...

The growing discussions of impact investing and stakeholder capitalism have increased interest in measuring companies' social impact. We conceptualize corporate social impact as the welfare loss that would be caused by a firm's exit. To illustrate, we quantify the social impacts of 74 firms in...

This is a Powerpoint presentation. The full article is also available on ssrn at http://ssrn.com/abstract=1924831U.S. policymakers often treat market competition as a panacea. However, in the case of mortgage securitization, policymakers' faith in competition is misplaced. Competitive mortgage...

U.S. policymakers often treat market competition as a panacea. However, in the case of mortgage securitization, policymakers' faith in competition is misplaced. Competitive mortgage securitization has been tried three times in U.S. history - during the 1880s, the 1920s, and the 2000s - and every...

Cederwall discusses the Tax Foundation's virtual colloquium, "Making Sense of Profit Shifting" — featuring 18 leading tax scholars, practitioners, and policy experts — and explains how it reveals six significant themes of incongruence in the understanding of profit shifting. Cederwall...

We show how temporary ownership by private equity firms affects industry structure, competition and welfare. Temporary ownership leads to strong investment incentives because equilibrium resale prices are determined by buyers incentives to block rivals from obtaining assets. These incentives...

This article examines how fi rms facing volatile input prices and holding some degree of market power in their product market link their risk management with their production or pricing strategies. This issue is relevant in many industries ranging from manufacturing to energy retailing, where...