Price markups over marginal cost are often higher on "aftermarket" parts, service, and supplies for durable goods that they are on the goods themselves. One explanation for this phonomenons is that the aftermarket good is used as a "metering" device to price discriminate among consumer, a model...

The behavior of nuclear plant operators is consistent with a model of dynamic cost minimization. Utilities compare the cost the cost of generating power from their own nuclear plants with the cost of obtaining "replacement power" form other sources and then optimaze the respective shares over time.

The first generation of competition laws in Central Eastern Europe-enacted in 1990 and 1991 in Czechoslovakia, Hungary, Poland, and Russia-have undergone significant amendements following their earliest enforcement period.This paper uses an analytical framework previously used to examine those...

Exploring a variant of the model of Aghion and Bolton Yields the following results. When an incumbent seller is constrained to price linearly, an exclusionary vertical contract Pareto-dominates spot sales by smoothing prices across states of the world ( potential entrant does or does not appear).

Motivated by relatively recent theoretical contributions on the role played by uncertainty, sunk costs and technological change in influencing entry, exit and industry structure, we conduct an empirical analysis covering 267 U.S. manufacturing industries over the period 1963-1992.

Recently developed tools are used to predict the effects of differentiated products mergers, but they require the assumption of a particular functional form for industry demand, and any assumption is vulnerable to attack. This paper demonstrates that marginal cost reductions necessary to restore...