In this note, we use a two-stage game to examine the domination of uniform price by third-degree price discrimination in a -firm, two-market model. Not surprisingly, when , a monopoly case results. Accordingly, the price, output, profit, and welfare effects under third-degree price...

In June 2006, Russian federal law legalized the exclusive right of Gazprom to export natural gas to Europe, and thus thwarted efforts by the European Union to bring competition to the Russian gas industry. An understanding of the motivation of the Russian government to support this export...

Quantifications of gains from trade in heterogeneous firm models assume that productivity is Pareto distributed. Replacing this assumption with log-normal heterogeneity retains some useful Pareto features, while providing a substantially better fit to sales distributions-especially in the left...

In this note, we use a two-stage game to examine the domination of uniform price by third-degree price discrimination in a -firm, two-market model. Not surprisingly, when , a monopoly case results. Accordingly, the price, output, profit, and welfare effects under third-degree price...

We investigate the welfare effect of union activity in a relatively new oligopoly model, the Cournot-Bertrand model, where one firm competes in output (a la Cournot) and the other firm competes in price (a la Bertrand). The Nash equilibrium prices, outputs, and profits are quite diverse in this...

This paper studies banks' competitive behavior on the deposit side of the Italian retail banking industry. We use a structural model to estimate demand for deposit services and test several supply models. We find that both the competitive, differentiated product Bertrand and the perfectly...

We study consumer surplus in a single market when (a) there is a lower bound in the consumption of the outside good and (b) the weights in the social welfare function given to consumers and firms are different. We assume quasilinear utility. When the lower bound constraint on the consumption of...

The paper investigates the effects of corruption in the entry-certifying process on market structure and social welfare for a Cournot industry with linear demand and costs. To gain entry, a firm must pay a bribe-maximizing official a fixed percentage of anticipated profit, in addition to the...

The impact of product variety on welfare has received little attention in the electronic commerce literature. The problem with product variety is that more variety does not necessarily imply higher welfare. This paper finds the conditions under which more variety, if caused by lower fixed costs,...