bargaining power against other suppliers in the production process. The cost of integration is a loss of exibility in choosing …Improving a company's bargaining position is often cited as a chief motivation to vertically integrate with suppliers …. This paper expands on that view in building a new theory of vertical integration. In my model firms integrate to gain …

marginalization may offset increases in market power and incentives to raise rivals' costs. To study the effects of vertical … integration between insurers and hospitals, we develop a model of bargaining and competition. Integrated firms have incentives to …

parameters and the effect of existing preferential trade agreements on trade cost. With those estimates in hand, we simulate the … and reduce non-tariff barriers as other deep PTAs have done in the past. We find a long-run increase of real income of .4 … severe for value added trade than for gross trade. This highlights the importance of global value chains in understanding the …

. The long-run level of real per capita income would change by 2.12% in the EU, by 2.68% in the US, and by -0.03% in the …. Moreover, trade diversion effects are more pronounced in value added trade than in gross trade. This signals a deepening of the …

strategies that are smooth in a subspace of the Sender's information. Smooth communication equilibria are extremely tractable … information structures such that in equilibrium the Sender credibly communicates his ideal policy and the Receiver correctly takes … the Sender's advice at face value and ii) the unique outcome of Nash-bargaining over information structures induces …