This paper examines the economic consequences of code-sharing agreements (CSA) in the airline market. CSA can be viewed as a vertical contract between airlines, which sometimes co-own the code-shared flights. Our structural model aims to understand how and to what extent CSA distorts market...

To address the relationship between innovation and competition we jointly estimate the opportunity, production, and impact functions of innovation in a simultaneous system. Based on Swiss micro-data, we apply a 3-SLS system estimation. The findings confirm a robust inverted-U relationship, in...

We run a regression discontinuity design analysis to document the causal effect of increasing buyers' discretion on procurement outcomes in a large database for public works in Italy. Works with a value above a given threshold have to be awarded through an open auction. Works below this...

I revisit a loss-leader hypothesis to test a previously untested theory within countercyclical pricing where firms target consumers of high shopping basket value. I estimate a model to predict shopping basket values of consumers to then utilize in estimating of the targeting of high valued...

The standard of proof required in merger cases has become the centre of considerable controversies and confusion following the Australian Federal Court's decision in Metcash. This paper reviews the use of counterfactuals and the inherent contradictions in adopting the real chance standard of...

This paper explores the economic implications of different contract durations in markets for on-line (primary and secondary) reserve capacity in Germany with the crucial feature of separate markets for spot energy and reserve capacity provision. The analysis is based on an equilibrium model...

A large fraction of US public stock is held by institutional investors that frequently hold shares in multiple firms in the same industry ("common ownership"). Concerns have been raised that common ownership might harm competition if it confers influence over important strategic decisions. Using...

We investigate the relation between common institutional ownership of the firms in an industry and product market competition. We find that common ownership is neither robustly positively related with industry profitability or output prices nor robustly negatively related with measures of...

Based on an analysis of cartel prosecutions since 2007, this article assesses the way the European Commission has built up its fines in practice. The fines are compared with those imposed by the European Commission over the period from 1999 to 2006. The main findings are that, while fines have...

This paper evaluates four publicly discussed policy options to mitigate market power in the German wholesale electricity market. These four options are: a regulatory solution favoured by the Federal Ministry for Economics and Technology, the implementation of a day-ahead flow-based market...