Existing models of R&D are not easily reconciled with four observable aspects of R&D: initial technologies ('ideas') need to be developed further, only a minority of initial ideas is successfully brought to the market, production and process innovations take place simultaneously (whereby,...

This paper evaluates the effects of the lack of regulatory commitment on emission tax applied by the regulator, abatement effort made by the monopoly and social welfare comparing two alternative policy games. The first game assumes that the regulator commits to an ex-ante level of the emission...

This paper investigates the effect of credibility of environmental policies on environmental innovation and welfare. When the government precommits to an emission tax, the monopolist's abatement effort is lower than if the environmental policy is at the government's discretion. Time consistent...

We consider consumer entry in the canonical monopolistic nonlinear pricing model ( Mussa and Rosen 1978) wherein consumers learn their preference 'types' after incurring privately known entry costs. We show that by taking into account consumer entry, the nature of optimal nonlinear pricing...

The paper studies the impact of homophily on the optimal strategies of a monopolist, whose marketing campaign of new product relies on a word of mouth communication. Homophily is a tendency of people to interact more with those who are similar to them. In the model there are two types of...

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...

This paper analyzes optimizing decisions of a monopolist under uncertainty. The aspiration model directly accounts for asymmetric risk preferences with respect to downside risk. The optimal output (price) of a risk-averse monopolist facing marginal cost uncertainty will not exceed that of his...

The constitutional conception of market integration within the European Union entails creating a level playing field for competition in the consolidated banking sector. The financial crisis of 2008 brought with it the need to proceed with care as it rolled back the gains of improving competitive...

The so-called excess-entry theorem (Mankiw and Whinston 1986, Suzumura and Kiyono, 1987) establishes conditions guaranteeing that more firms enter a homogeneous Cournotoligopoly in equilibrium than a benevolent government prefers. We generalise the approach and analyse the behaviour of a...

Aftermarket social welfare is largely determined by a procurement auction design. Auctions select firms for operating aftermarkets, and auctions may also impose restrictions on aftermarket prices the winner can charge. This paper compares aftermarket social welfare generated by first-price and...