This paper studies the response of a dominant domestic oligopoly to the reduction in the rate of a protective tariff. The issue here is whether the domestic market performance is improved through a movement toward free trade alone. Put another way, is free trade always a substitute for...

This paper examines two questions related to merger policy in an economy moving toward free trade. The first asks whether the enhanced competition from foreign firms that comes with lower tariffs will always serve to reduce the market power effects of domestic mergers. While mergers involving...

Using a simple two-period model, this paper attempts to explain certain interesting intertemporal properties of product warranties. Specifically, why does coverage generally fall over time and why is the typical warranty's life so much shorter than the expected life of the product it covers? We...

A number of recent antitrust cases in the United States, Canada and Europe have involved durable goods manufacturers refusing to supply proprietary parts to independent service organizations, apparently to monopolize the market for repairs of their products. Earlier work suggested that even if...