This paper examines the impact of social security on national saving and individual welfare in the presence of realistic capital-market imperfections: market failure in the private provision of annuities and restrictions on borrowing against anticipated future wages. The introduction of social...

Static oligopoly theories disagree on whether mergers are profitable. The Cournot model says that many potential mergers would be unprofitable whereas the Bertrand model says that all mergers are profitable. We show that, for economically sensible parameter values, mergers are profitable for...