We analyze the interaction between market structure and market performance and how it varies over the product cycle. To account for the potential endogeneity in this relation, we use an instrumental variable approach. We combine data from the largest Austrian online market for price comparisons...

Very tight generation capacity (‘underinvestment’) in competitive electricity markets is a major concern to policymakers. Employing a model with endogenous capacity, capacity mix, operations and with uncertain demand we show that ‘underinvestment’ is due to the rational (non-abusive)...

Investments in Generating Capacities between a monopolist and two competing firms are compared where the firms invest in their capacity and fix the retail price while electricity demand is uncertain. A unit price auction determines the wholesale electricity price when the firms compete. They...

Many oligopoly theories predict that there will be a positive correlation between market size and the equilibrium number of firms, and some also imply that competition is more intense in larger markets. We test these predictions with a sample of 535 driving schools in 249 markets. With an...

This paper addresses the effects of a prohibition on providing non-audit services (NAS) to audit clients. By combining a strategic auditor-client game with a circular market-matching model that has an endogenous number of auditors, we take into account the interdependence between the auditors'...

Vertical separation of generation from electricity retailing has often been required as a condition of electricity market liberalisation. A well-developed and liquid contracts market is similarly suggested as necessary to manage the resulting wholesale market risks, which risks are further...

This paper develops a model of pricing and advertising in a matching environment with capacity constrained sellers. Sellers' expenditure on directly informative advertising attracts consumers only probabilistically. Consumers who happen to observe advertisements randomize over the advertised...

In this paper, we address the issue of the appropriate market structure in European mobile markets by presenting empirical evidence on the effect of the number of MNO on investment. Using a structural entry model based on a country-level dataset of 28 European countries, we find that, in average...

We study the determination of market power at the firm and industry levels when heterogeneous firms compete for sales to ex ante homogeneous buyers in a market with both directed and random search and free entry of firms that differ in productivity. Search and the distribution of productivity...

This paper studies the strategic introduction of an opaque channel by incumbent firms. We endow a circular city model with an intermediary that sells lotteries (opaque products) over goods produced by upstream firms. Compared to the benchmark model (Salop, 1979), opaque intermediation creates...