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Criminals are embedded in a network of relationships. Social ties among criminals are modeled by means of a graph where criminals compete for a booty and benefit from local interactions with their neighbours. Each criminal decides in a non-cooperative way how much crime effort he will exert. We...
Persistent link: https://www.econbiz.de/10010320179
We develop a model of vertical pricing in which an original manufacturer sets wholesale prices in two markets integrated at the distributor level by parallel imports (PI). In this context we show that if competition policy requires uniform wholesale prices across locations it would push retail...
Persistent link: https://www.econbiz.de/10010320184
The expansion of welfare-state arrangements is seen as the result of dynamic interaction between market behaviour and political behaviour, often with considerable time lags, sometimes generating either virtuous or vicious circles. Such interaction may also involve induced (endogenous) changes in...
Persistent link: https://www.econbiz.de/10010320185
We develop a model where information about jobs is essentially obtained through friends and relatives, i.e. strong and weak ties. Workers commute to a business center to work and to interact with other people. We find that housing prices increase with the level of social interactions in the city...
Persistent link: https://www.econbiz.de/10010320195
use of the Doing Business database, we find, consistent with our theory, evidence that international openness reduces …
Persistent link: https://www.econbiz.de/10010320207
The make-or-buy decision is analyzed in a simple framework combining contractual incompleteness with the existence of imperfect but contractible performance measures. Contractual incompleteness gives rise to two regimes, identified with make and buy. The performance measure on which...
Persistent link: https://www.econbiz.de/10010320222
In this paper we treat an individual's health as a continuous variable, in contrast to the traditional literature on income insurance, where it is regularly treated as a binary variable. This is not a minor technical matter; in fact, a continuous treatment of an individual's health sheds new...
Persistent link: https://www.econbiz.de/10010320225
Why do so many high-priced acquisitions of entrepreneurial firms take place in network industries? We develop a theory …
Persistent link: https://www.econbiz.de/10010320239
This is a game-theoretic analysis of the link between regime type and international conflict. The democratic electorate can credibly punish the leader for bad conflict outcomes, whereas the autocratic selectorate cannot. For the fear of being thrown out of office, democratic leaders are (i) more...
Persistent link: https://www.econbiz.de/10010320243
The make-or-buy decision is analyzed in a three-layer principal-management-agent model. There is a cost …-saving/quality tradeoff in effort provision. The principal chooses between employing an in-house management and contracting with an … independent management; the cost-saving incentives facing the management are, endogenously, weaker in the former case. Cost …
Persistent link: https://www.econbiz.de/10010320245