This paper develops a model that formalizes several connections between mergers, collusion and competition policy. In equilibrium, firms may merge to make collusion sustainable when it cannot be sustained with the original set of firms. A rise in the probability of detecting and prosecuting...

This paper studies the mechanisms behind party polarization in the US Congress. The model generates a link between the initial composition of the parties, the behavior of new interest groups and the pattern and level of polarization along the new policy dimension (e.g., environment). Our...

We develop a simple model to explain why a powerful importer country like the United States may provide political support for international collusive agreements concerning certain commodities (e.g., coffee). This behavior raises questions due to the fact that an importer country should have...

We develop a simple model to explain why a powerful importer country like the United States may provide political support for international collusive agreements concerning certain commodities (e.g., coffee). This behavior raises questions due to the fact that an importer country should have...

Although the frequency of incidents has been decreasing over time, oil spills with major ecological and socioeconomic impacts still occur, leading to situations in which the cost of the damage was substantially higher than the limitation of liability imposed by the conventions of the so-called...

This paper develops a simple model of colonial wars and trade restrictions. Two metropolises compete to gain control over the trade policy of a colony. In equilibrium, the winning metropolis can improve its own terms of trade by restricting trade flow between the rival metropolis and the colony....

In International Relations the canonical model of inter-estate interactions is a one-shot security competition game. The model has the structure of a prisoners dilemma, which results in an equilibrium with two sources of inefficiency: excessive arming and possibly the destruction associated with...

In International Relations the canonical model of inter-estate interactions is a one-shot security competition game. The model has the structure of a prisoners dilemma, which results in an equilibrium with two sources of inefficiency: excessive arming and possibly the destruction associated with...

We develop a simple (incumbent versus entrant) strategic deterrence model to study the economic and geopolitical interactions underlying international trade-related infrastructure projects such as the Panama Canal. We study the incentives for global geopolitical players to support allied...