We study alternative market power mitigation measures in a homogeneous goods industry where productive assets have asymmetric costs. We characterise the asset divestment by a dominant firm which achieves the greatest reduction in prices (taking the size of the divestment as given). The optimal...

In 2012–2013 the European Commission has had particularly prominent merger cases, with two prohibitions of transactions and several clearances with far-reaching remedies. In these cases economic analysis has been tightly integrated into the general argument of the Commission and became central...

Donors who seek to impose policy conditionality on countries receiving their aid commonly face conflicting incentives between using aid to induce income-increasing reforms and using it to assist low-income countries: this conflict can lead to a time-consistency problem. This paper illustrates...

One of the main elements of the recent reform of electricity trading in the United Kingdom is the change from a uniform price auction in the wholesale market to discriminatory pricing. We analyze this change under two polar market structures (perfectly competitive and monopolistic supply), with...