In this article, the authors examine a European Commission ruling that classified the U.K. controlled foreign corporation group financing exemptions as illegal state aid and has now been upheld by the General Court of the European Union. They argue that unlike the commission’s previous state...

I study how retailers introduce new products and learn to set prices across a network of stores. Retailers are often uncertain about the demand for new products which makes setting an appropriate price difficult. To learn about demand for a product that is new to a market, retailers use demand...

Most macroeconomic series failed to capture the sharp fluctuations during the COVID-19 pandemic. Also, it proved difficult to extract business cycle information from alternative high-frequency data. We present a Bayesian mixed-frequency dynamic factor model with stochastic volatility for...

Green Power Purchase Agreements (Green PPAs) are contracts that trade electricity from renewable sources for a fixed price. These contracts have gained importance over the last years and are increasingly traded because they facilitate investment in renewable energy assets in lieu of state...

Two firms compete for exclusivity of a superior input, then choose their quality and price. Exclusive dealing is a unique equilibrium when the input changes the equilibrium quality of at least one firm. Otherwise, there also exists a non-exclusive equilibrium. The quality pass-through of the...

This chapter summarizes recent development on simple heuristics for optimal inventory policies of multi-echelon inventory systems. These simple heuristics are based on solving a sequence of single-stage inventory problems whose parameters are obtained from the original system data. We mainly...

How to ascertain causal relationships has been a key question in science and philosophy for centuries. Based on established ideas on causation, we develop a quantitative measure of an agent's causal responsibility for the state of a dynamical system: we measure the degree to which an agent's...

Usually, economic research on collusion looks at the firms and how they optimally behave. The complex situation in which involved agents of the firms find themselves tends to be overly simplified or overlooked. This exploratory paper looks through the lens of the `governance of the commons' to...

By constructing a social welfare function that incorporates the explicit value judgments of Atkinson's measure of inequality, the paper develops implications of optimal income taxation derived using double limit analysis for transfers and inequality. The losses arising from transfers in the...

This paper studies choice of organizational structure (vertical separation or vertical integration) under demand uncertainty with incomplete information. In order to highlight our assertions, a price duopolistic competition model with stochastic demand is considered. The stochastic demand, once...