We present evidence that event studies can help antitrust agencies forecast impacts of mergers on innovation. In large pharmaceutical mergers, cumulative abnormal returns on portfolios of rivals predict post-merger changes in the combined firm's R&D intensity. More favorable impacts on rivals...

Regulating a natural monopoly market has always remained a source of concern. The problem arises because of the decreasing average cost structure in the market. Ideally, only one firm serving the whole market demand is the efficient solution to avoid any cost duplication. However, when there is...

Over the last decade, randomized evaluations have taken the field of development economics by storm. Despite the availability of strong review pieces in the topic, there is no pedagogical paper on randomized evaluation. This paper bridges the gap by introducing three interactive classroom games...

This paper studies the efficacy of entry threats in a contestable environment using experiments. It is hypothesized here that the entrant firm's home market profits influence the entrant's competitive behavior even when entry is costless and completely reversible. In the experiment, entrants and...

The goal of this paper is to examine stability in preferences using the Stigler-Becker state-dependent framework. Using a randomized intervention that changes the opportunity sets of individuals we construct a unique panel data from an artefactual field experiment and evaluate whether the change...

We present an experiment that evaluates the relative efficacies of higher fines and detection rates in combating bribery. Our results indicate that corrupt officials are deterred more by the threat of high fines in an asymmetric punishment environment than in a symmetric punishment environment....