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Do we have effective competition between the gasoline's big five oligopolists (Aral, Shell, Esso, Total and Jet) and fringe gasoline stations? Using 2014 Market Transparency price data from 66 cities with populations between 60,000 and 100,000, we analyze which brands lead price increases, the...
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We analyze the financial leverage of firms that collude to soften product market competition by forming a cartel. We … find that cartel firms have lower leverage during collusion periods. This is consistent with the idea that cartel firms … strategically reduce leverage to make their cartels more stable, because high leverage makes deviations from a cartel agreement more …
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Product differentiation is well established as being the key source of the cereal industry's high price-cost margins. However, there is little consensus as to whether pricing collusion is also a source of profitability, and indeed, whether price even serves as a strategic variable in this...
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We describe the economics literature on auction markets, with an emphasis on the connection between theory, empirical … and estimation issues, with an emphasis on the connection between theory and empirical practice. We also discuss both …
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