This paper argues that the sign of external effects of coalition formation provides a useful organizing principle in examining economic coalitions. In many interesting economic games, coalition formation creates either negative externalities or positive externalities on nonmembers. Examples of...

This paper argues that the sign of external effects of coalition formation provides a useful organizing principle in examining economic coalitions. In many interesting economic games, coalition formation creates either negative externalities or positive externalities on nonmembers. Examples of...

The purpose of this paper is to offer an explanation of why a developing country may adopt a partial reform under which foreign direct investments are controlled. We consider a country where the ruling elite [referred to as State capital] prevents the entry of Foreign capital and taxes the...

For a relatively young agency with only a quarter-century history, the Korea Fair Trade Commission (KFTC) has achieved some remarkable success in cartel enforcement and competition advocacy. However, its track record in enforcing merger control leaves much to be desired and its recent ambitious...

I study stable structures of efficiency-enhancing joint ventures among symmetric firms. Efficiency gains that accrue to a joint venture are assumed to increase with its size. The socially efficient industrywide joint venture is the stable outcome when membership of a joint venture is open to...

This paper examines the welfare effects of the formation of a free-trade area. When a country is constrained to charge lower tariffs on imports from some countries, it is in its interest to reduce external tariffs as well. In a linear-quadratic model of intraindustry trade, the reduction in...

The paper investigates why a developing country may adopt a partial reform. A country is considered where the ruling elite (referred to as state capital) prevents the entry of foreign capital, and taxes the private sector before reform. A higher productivity of foreign capital always increases...