This paper considers the effects of entry in the final goods market when the input market is imperfectly competitive. We show that entry of a new firm may increase profit of the incumbent if the technology of the entrant is sufficiently inferior to that of the incumbent...

This paper is concerned with the impact of food scares, principally the BSE crisis, in the UK and focuses on price adjustment at different stages in a vertically-related market. Our interest is motivated primarily by the presence of market power that is alleged to occur in UK food retailing....

This paper focuses on price transmission in a vertically-related set-up where the retail stage may exercise oligopoly and/or oligopsony power, an issue addressed by the UK anti-trust authority investigation of the food retailing sector. From a theoretical perspective, we set out simple tests...

The paper compares two models of evolution in symmetric twoplayergames with incomplete information. One model postulates thatthe type of a player is fixed, and evolution works within types. Inthe other model type-contingent strategies evolve. In the case of twotypes and two strategies it is...

In a recent paper Mujumder (2004, Economics Letters) argued that only if the industry is a monopoly, we could be certain that the government could use profit tax to make up any shortfall in tariff revenue and also make the consumers and producers better off. We show that this result is not...

We show the effects of entry of a domestic firm and a foreign firm on welfare, in presence of licensing. In case of licensing with up-front fixed-fee, domestic entry increases welfare if the technological differences between the firms are not very large, whereas foreign entry increases welfare...

This paper shows that if number of firms is determined endogenously, Cournot competition generates higher welfare compared to Bertrand competition when products are sufficiently differentiated. If products are close substitutes, welfare is higher under Bertrand competition. We show that the...

A second-generation model of currency crises is combined with a standard model ofbanks as providers of insurance against liquidity risk. In a pegged exchange rateregime, after funds have been committed to the banks, news arrives about the qualityof the banks’ assets and about the exchange rate...

The paper shows that there is a close connection between (constant)consistent conjectures in a given game and evolutionary stabilityof conjectures. Evolutionarily stable conjectures are consistent andconsistent conjectures are the only interior candidates for evolutionarystability...

This paper provides an analytical framework for exploring the relationshipbetween equity and efficiency for two riparians sharing a transboundary river.Decreasing marginal productivities of water make a noncooperative approach inefficientwhen water is scarce. If the upstream riparian uses its...