The Great Recession, which was preceded by the financial crisis, resulted in higher unemployment and inequality. We propose a simple model where firms producing varieties face labor-market frictions and credit constraints. In the model, tighter credit leads to lower output, lower number of...

The Great Recession, which was preceded by the financial crisis, resulted in higher unemployment and inequality. We propose a simple model where firms producing varieties face labor-market frictions and credit constraints. In the model, tighter credit leads to lower output, lower number of...

Real-world industries are composed from heterogeneous firms and substantial intra-industry reallocations take place, i.e. high productivity firms squeeze out low productivity firms. Previous tax-tool comparisons have not included these central forces of industry structure. This paper examines a...

Using estimable concepts, this paper provides sufficient conditions for third-degree price discrimination to increase or decrease aggregate output, social welfare, and consumer surplus in differentiated oligopoly when all discriminatory markets are open even in the absence of price...

This paper considers a dynamic duopoly market with strategic, price setting firms and an infinite set of fully rational, privately informed consumers who enter the market sequentially. I show that there exists a sequential equilibrium in which prices converge to their realized product qualities...

It is common for platforms to have rules for their users to abide. Most times, users of the platform break the rules of the platform, and sometimes they get delisted or removed from the platform. Most platforms own the first party content. To the best of our knowledge, we are the first to study...

We analyze an equilibrium search model in a duopoly setting with bilateral heterogeneities in production and search costs in which firms can advertise by announcing price and location. We study existence, stability, and comparative statics in such a setting, compare the market advertising level...

This paper investigates the relationship between technical progress, competition, and the impact on consumer's surplus and welfare. A Hotelling model in symmetrical duopoly with full market coverage is introduced. Firms invest in order to improve the quality of their offer and thus consumers'...

Merged firms are typically rather complex organisations. 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...

Increasingly dominant online platforms are collecting and sharing user data across multiple markets, raising red flags as regards privacy, as well as potential anti-competitive abuses. We analyse competition among two platforms that compete in prices and advertising quantities, with one platform...