In the article, we implement an empirical test on the portfolio effects of conglomerate mergers, using the data of Korean liquor market during the period 1990-2008 in which there have been several important conglomerate mergers between beer and soju companies. We find that the combined company...

I analyze a simple model of reciprocal agency, in which two persons play interchanging roles of agent and principal, and show that optimal contracts can provide more incentives in reciprocal relationships than in unilateral relationships. Moreover, in the sequential setup, there exists a...

I derive Ramsey optimal prices in one-way access of long-distance operators and enhanced service providers to local loops. As long-distance services and enhanced services become substitutes due to the advance of Internet telephony, the Ramsey principle requires higher access charges assessed on...

I derive Ramsey optimal prices in one-way access of long-distance operators and enhanced service providers to local loops. As long-distance services and enhanced services become substitutes due to the advance of Internet telephony, the Ramsey principle requires higher access charges assessed on...