This article analyzes intergovernmental transfers in a federal setting where lower level governments use distortionary taxation. Transfer policy is modeled in a federation with two states: foreign ownership of land and endogenously determined tax rates. The article concludes that under these...

In the context of a three-stage model with consumers differing in their health insurance coverage, the paper shows that there exist conditions under which the price of brand-name drugs increases following the entry of generic drugs.

The objective of this paper is to demonstrate that price dispersion is possible even in a world of perfect information and identical consumers and firms. The driving force in the model is service capacity and congestion cost. Each firm chooses a service capacity. Customers of a firm bear a...

In the literature explanations of price dispersion invariably depend on the assumptions of imperfect information and/or some form of heterogeneity among either consumers or firms. The objective of this paper is to demonstrate that price dispersion is possible even in a world of perfect...

In the case of persistent dumping, welfare effects are ambiguous. Therefore, the existing international trade theory cannot provide a clear rationale for policies to prohibit international price discrimination. Through a two-stage game on the endogenous foreign monopolist's dumping decision,...

The price premium of generic pharmaceuticals to brand-names is examined under different competitive market situations. The result of this study shows that the number, market share, and the age of both brand-name and generic products have the most explanatory power for explaining the price...

The objective of this paper is to provide two-stage game models explaining the 'Generic Competition Paradox' that demonstrates an increase of brand-name drug price in response to generic entry. Under the assumption that there are two groups of consumers who are segmented by their insurance...