This paper develops a model for demand-system estimations, whose coefficients are own-price Marshallian elasticities and elasticities of substitution between goods. The model satisfies the homogeneity, symmetry and, eventually, adding-up restrictions implied by consumer theory, and is primarily...

Recent theoretical work has shown that the incidence of ad valorem and specific taxes may differ and each may be over or under-shifted onto consumers in the presence of imperfect competition. Empirical comparison of the price effects of the two taxes is limited. There are no previous estimates...

Recent theoretical work has shown that the incidence of ad valorem and specific taxes may differ and each may be over or under-shifted onto consumers in the presence of imperfect competition. These results are used to derive a method of estimating market power and conduct. An application is made...

We propose a model of investments prior to corporate ownership changes. We derive conditions under which the selling of a firm triggers overinvestment by both the seller and the buyer prior to the asset transfer. In a setting with Cournot competition, we show that these incentives can drive the...

In times of increasing oil prices and a weak dollar, European companies that focus their business on the US market may find themselves in a weak position. While many businesses can hedge this kind of risk by relocating production to the US, or employing financial remedies, these strategies may...

Recent theoretical work has shown that the incidence of ad valorem and specific taxes may differ and each may be over or under-shifted onto consumers in the presence of imperfect competition. Empirical comparison of the price effects of the two taxes is limited. There are no previous estimates...

Recent theoretical work has shown that the incidence of ad valorem and specific taxes may differ and each may be over or under-shifted onto consumers in the presence of imperfect competition. These results are used to derive a method of estimating market power and conduct. An application is made...

By the 2008 Pricing of Pasta decision the Italian Competition Authority (ICA) condemned 26 pasta makers and two industry associations for carrying out price-fixing practices in the market for durum semolina pasta. In order to establish the cartel, the ICA relied on economic evidence indicating...

In this paper, we offer a hybrid approach to merger simulation in which we allow rather extensive pre-testing to suggest the ‘correct', or most desirable, form for the underlying demand curves. Our application is the merger between the large mobile telephone companies Cingular and AT&T...

Experience goods are those where the utility received is not known until consumed. The purchase can be viewed as a lottery. Consequently, risk preferences should affect willingness to pay and the price. Data from panels of experts rating cigars is used to test this assertion. For inexpensive...