This paper analyzes the productivity in the US rail industry for the period 1980 - 2006. I propose a value-added production framework to circumvent the problem of measurement error in one input. I find evidence showing that aggregate productivity gains can be attributed to returns to scale and...

This paper estimates the nature and effects of quality and cost innovations in the early automobile, personal computer, rigid disk drive, computer monitor, and computer printer industries using industry-level data on firm numbers, price, quantity, and quality along with an equilibrium model of...

This paper models a key outcome of secret negotiations: partial-leniency fine discounts from plea bargaining in criminal price-fixing cases. Models tested explain up to 52% of variation in percentage discounts. A minor portion is explained by such defendants characteristics as the defendant s...

This paper evaluates the effectiveness of the efforts of the Antitrust Division of the U.S. Department of Justice to detect, indict, and deter horizontal collusion during 1990-2007 and offers policy suggestions likely to improve that enforcement. Division leaders emphasize that collusion is the...

Many industries experience periods of excess capacity. Explanations include firms deterring rivals, anticipating future demand, or the lumpiness of investment. This paper identifies capacity investment intended to deter rivals separately from investment driven by other factors. To achieve this...

The real-dollar processor-retailer margin of fresh beef in the United States increased by more than 30% from 2011 to 2016, a substantial and rare increase for a major agricultural product. In the meantime, the processor-retailer markup ratio increased from 35-39% to 43-47%. We investigate the...

This paper examines the relative importance of horizontal market structure, auction design, and vertical arrangements in explaining electricity prices. We define vertical arrangements as either vertical integration or long term contracts whereby retail prices are determined prior to wholesale...

This paper focuses on the pricing behavior of Japanese and United States firms selling their identical products in New York City, Chicago, Osaka, and Tokyo. The authors utilize some simple models of international price dispersion and market segmentation that generate predictions about testable...

For criminal violations of the Sherman Act, although guided by federal sentencing guidelines, U.S. Department of Justice has great latitude in recommending corporate cartel fines to the federal courts, and its recommendations are nearly always determinative. In this paper, we analyze the...

This paper investigates the impact of the digital camera on the demand for photographic film that are now facing the declining demand. Although few studies estimate demand function of declining industry, it is important in an oligopoly market to know how the slope of demand function changes when...