Over 20 recent antitrust cases have turned on whether competition in complex durable-equipment markets prevents manufacturers from exercising market power over proprietary aftermarket products and services. We show that the price in the aftermarket will exceed marginal cost despite competition...

The authors test and confirm that retail gasoline prices respond more quickly to increases than to decreases in crude oil prices. Among the possible sources of this asymmetry are production/inventory adjustment lags and market power of some sellers. By analyzing price transmission at different...

In many industries, the largest firms are most successful in entering and competing in individual markets or submarkets. While this success is often attributed to cost or quality differences, it may also reflect reputation advantages or marketing strategies that benefit firms selling a wider...