This paper demonstrates that improving cost efficiency in a vertical structure might sometimes be detrimental to consumers. This is in stark contrast with the standard microeconomics result which suggests that the surplus generated by any efficiency gain in production is shared between firms and...

This paper studies the optimal auction for a seller who is bound to sell a single item to one of two potential buyers organized in a ”well-coordinated” cartel. After discussing the way the cartel reacts to any auction mechanism, we show that if the seller has no way to deter collusion, he...

The current allocation of slots on congested European airports constitutes an obstacle to the effective liberalisation of air transportation undertaken in Europe. With a view to favouring efficient slot utilisation and competition, as is the goal of the European commission, we propose to use a...

This note extends Kreps and Scheinkman's result -showing that a production capacity choice stage followed by price competition yields the same outcome as a Cournot game- to a setting where capacity costs are asymmetric.

Nicolas Gruyer and Nathalie Lenoir discuss the current allocation of slots on congested European airport. In their eyes the system of grandfather rights constitutes an obstacle to the effective liberalisation of air transportation undertaken in Europe. In this article they propose to use a...

In this paper, we study the impact of the introduction of posted prices in the slot allocation process currently in use at congested airports in most European countries. In particular, we show that if the airport is initially saturated, while low level of slot prices entail no response from the...