The purpose of this paper is to test the nature of competition concerning price and capacity setting in the Norwegian airline industry after the deregulation in 1994. Did the two airlines, SAS and Braathens, compete on prices and capacities (competition), collude on prices and capacities...

Empirical evidence suggests that there are important spillovers as-sociated with the operations of multinational enterprises. Spillovers may occur when less advanced, local firms learn from their more ad-vanced, foreign competitors. But less advanced firms may also actively seek knowledge by...

The paper studies how uncertainty about future trade arrangements affecting firms' competitiveness and market access, may influence firms' investment behaviour and choice of location. Our analysis is based on a model of imperfect competition, and we show that risk aversion is not a necessary...

This paper discusses the problems involved in considering competition policy as a separate area of economic policy. Two problems are given special attention. The first is the doubtful efficiency gain from enforcing competitive conditions in one industry when other industries are not operating at...

We analyze two-part tariffs in oligopoly, where each firm commits to a certain quantity. The model is an extension of the one introduced in Harrison and Kline (2001).We show that their main results are reversed when the model is extended from one to two types of consumers.

This paper studies strategies pursued by banks in order to differentiate their services from those of their rivals. In that way competition among banks is softened. More specifically we analyze if the bank size, the banks ability to avoid losses,and its capital ratio can be used as strategic...

This paper analyses the relationship between the size of jurisdictions and the degree of redistribution. A simple political economy model with cross-border shopping and limited and impure altruism is developed in order to study how the size of jurisdictions affects both the cost of...

The literature on international tax competition has shown how increased international mobility of the tax base may create a downward pressure on tax rates and give rise to increased inequality in disposable income. This paper endogenises the mobility of the tax base, explaining mobility as a...

Anticipation of technological progress may induce potential buyers to delay adoption of a new product. We analyze how buyers' waiting option can alter firms' innovation strategies. It is shown that the firms' choice of innovation strategies relies on the possibility of selling products before...