The hypothetical monopoly test for market power is translated into an operational 'formula' involving cost and demand elasticities. The importance of the choice of the pricing benchmark is emphasized - and of why it is important to incorporate an assessment of cost structure when conducting such...

Though there has been some debate over the practical efficacy of using binary lotteries for controlling risk preferences in experimental environments, the question of its theoretical validity within the contexts it is often used, namely multi-stage multi-agent settings, has not been addressed....

This text provides full coverage of all the topics typically encountered in Business or Managerial Economics. It is designed to be appropriate for intermediate and final year undergraduate, first year graduate and MBA programmes in managerial economics and applied microeconomic analysis....

The EU is gradually systematizing its approach to ex ante regulation (notably with the publication of the recent regulatory framework for Electronic communications). Market definition is viewed as an essential first step in this, with the 'Hypothetical Monopoly Test' a useful conceptual tool for...

Replacement investment is essentially a regenerative optimal stopping problem; that is, the key decision concerns when to terminate the life of existing plant - and hence when to start over again. This paper examines this optimisation problem within a continuous time framework and studies the...