We report a policy experiment that illustrates a potential problem of using historical pass-through rates as a means of predicting the competitive consequences of projected firm-specific cost savings in antitrust contexts, particularly in merger analysis. The effects of cost savings on welfare...

We design an experiment to explore how geography shapes exchange between spatially distant markets and hypothesize that geographical isolation of traveling intermediaries from stationary sources of production creates social isolation that hinders trade. We characterize our economies with a...