Innovation enables monopolists to lower their costs, expand their outputs, and reduce their prices. It is conventional to conclude that social welfare unambiguously increases as a result. Assuming linear demand and marginal cost, this paper shows, however, that innovation raises the opportunity...

The Companion lays out a comprehensive history of the field and, in five additional parts, it explores public choice contributions to the study of the origins of the state, the organization of political activity, the analysis of decision-making in non-market institutions, the examination of...

By defining political economy and war in the broadest sense, this unique Handbook brings together a wide range of interdisciplinary scholars from economics, political science, sociology, and policy studies to address a multitude of important topics. These include an analysis of why wars begin,...

This authoritative and encyclopaedic reference work provides a thorough account of the public choice approach to economics and politics. The Companion breaks new ground by joining together the most important issues in the field in a single comprehensive volume. It contains state-of-the-art...

This paper tests a multiple principal-agent model of the Internal Revenue Service. Using data for 33 IRS districts over six tax years, 1992-1997, we report evidence that the fraction of individual income tax returns audited is significantly lower in districts that are important to the president...

As stated originally, the venerable law of one price succinctly describes long-run equilibrium in a perfectly competitive market. The law was later amended, defining a market as the geographic area within which the same thing sells for the same price at the same time, allowance being made for...

Purpose – Title III of the USA Patriot Act obligated the private sector to take a more active role in deterring money laundering and disrupting terrorist financing. Complying with the new law has increased the cost of doing business dramatically for firms in the financial services industry....