There is an extensive literature studying the welfare comparison of third-degree price discrimination vs. uniform pricing, typically under the assumption that all markets are served under uniform pricing. In this study, we allow market foreclosure and show that the welfare comparison of price...

The analysis of unilateral effects in horizontal mergers — especially on markets for differentiated goods — can take into consideration the extent to which the merging firms are close competitors. The elimination of a close competitor can result in an upward pricing pressure (UPP) on the...

In this comprehensive review of ex-post merger studies price effects of horizontal transactions are evaluated. By combining and further analyzing the results of 52 retrospective studies on 82 mergers or merger-like transactions it can be shown that the industry alone is no strong indication for...

The U.S. health care system is organized around markets. There has, however, been ongoing concern about the functioning of these markets, so much so that some have despaired of these markets working at all. The policy response to this concern has been disjointed. Health care markets are subject...

The U.S. health care system is organized around markets. There has, however, been ongoing concern about the functioning of these markets, so much so that some have despaired of these markets working at all. The policy response to this concern has been disjointed. Health care markets are subject...

We show the welfare effects of international trade cost reduction under endogenous domestic market structure. If the domestic labour market is competitive, there is no integer constraint and the trade cost represents transportation cost, a reduction in the transportation cost does not affect...

Recently there has been a notable increase in interest in antitrust law in much of the world. This chapter discusses antitrust policy toward horizontal mergers, the area of antitrust that has seen some of the most dramatic improvements in both economic tools and the application of economics in...

We analyze the welfare effects of parity rules, prevalent in telecommunications and other regulated industries, that force a vertically-integrated input monopolist to treat its own downstream affiliate and downstream competitors comparably in terms of input price and quality. When input pricing...

We analyze the welfare effects of “parity” rules that force a vertically-integrated input monopolist (VIM) to treat downstream affiliates and competitors alike in terms of price and quality. We find that input-quality parity can lower social welfare when input pricing is unregulated. In...