This paper characterizes the allocations that emerge in general equilibrium economies populated by households with preferences of the additive random utility type that make discrete consumption, employment or spatial decisions. We start with a complete markets economy where households can trade...

Merged firms are typically rather complex organizations. Accordingly, merger has a more profound effect on the structure of a market than simply reducing the number of competitors. We show that this may render horizontal mergers profitable and welfare-improving even if costs are linear. The...

The European Commission and its member states are wrestling with the problem of how to implement the scheduled liberalization of the postal sector while maintaining the service obligation. This book addresses some of these concerns. It is comprised of essays chosen from those presented at the...