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Endogenous Cartel Formation with Heterogeneous Firms

Bos, Iwan; Harrington, Joseph E. - 2008

In the context of an infinitely repeated capacity-constrained price game, we endogenize the composition of a cartel when .rms are heterogeneous in their capacities. When .rms are sufficiently patient, there exists a stable cartel involving the largest .rms. A .rm with sufficiently small capacity...

Persistent link: https://www.econbiz.de/10010277525

The impact of a corporate leniency program on antitrust enforcement and cartelization

Chang, Myong-Hun; Harrington, Joseph E. - 2008

To explore the efficacy of a corporate leniency program, a Markov process is constructed which models the stochastic formation and demise of cartels. Cartels are born when given the opportunity and market conditions are right, while cartels die because of internal collapse or they are caught and...

Persistent link: https://www.econbiz.de/10010277526

When does a self-serving antitrust authority act in society's best interests?

Harrington, Joseph Emmett - 2009

If an antitrust authority chooses policies to maximize the number of successfully prosecuted cartels, when do those policies also serve to minimize the number of cartels that form? When the detection and prosecution of cartels is inherently difficult, we find that an antitrust authority's...

Persistent link: https://www.econbiz.de/10010277531

The New Keynesian Phillips Curve and the cyclicality of marginal cost

Mazumder, Sandeep - 2008

countercyclical whereas theory predicts marginal cost should be procyclical, and it employs a counterfactual assumption about the …

Persistent link: https://www.econbiz.de/10010277532

Well-posedness of measurement error models for self-reported data

An, Yonghong; Hu, Yingyao - 2009

It is widely admitted that the inverse problem of estimating the distribution of a latent variable X* from an observed sample of X, a contaminated measurement of X*, is ill-posed. This paper shows that measurement error models for self-reporting data are well-posed, assuming the probability of...

Persistent link: https://www.econbiz.de/10010277534

Rhetoric in legislative bargaining with asymmetric information

Chen, Ying; Eraslan, Hülya - 2010

In this paper we analyze a legislative bargaining game in which parties privately informed about their preferences bargain over an ideological and a distributive decision. Communication takes place before a proposal is offered and majority rule voting determines the outcome. When the private...

Persistent link: https://www.econbiz.de/10010277535

Strategic voting over strategic proposals

Bond, Philip; Eraslan, Hülya - 2008

Prior research on 'strategic voting' has reached the conclusion that unanimity rule is uniquely bad: it results in destruction of information, and hence makes voters worse off. We show that this conclusion depends critically on the assumption that the issue being voted on is exogenous, i.e.,...

Persistent link: https://www.econbiz.de/10010277536

International evidence on sticky consumption growth

Carroll, Christopher D.; Slacalek, Jiri; Sommer, Martin - 2008

We estimate the degree of 'stickiness' in aggregate consumption growth (sometimes interpreted as reflecting consumption habits) for thirteen advanced economies. We find that, after controlling for measurement error, consumption growth has a high degree of autocorrelation, with a stickiness...

Persistent link: https://www.econbiz.de/10010277539

Corporate expenditure on environmental protection

Haller, Stefanie A.; Murphy, Liam - 2010

We examine the determinants of firm's current environmental expenditure and firm's capital investment in equipment for … pollution control using a Heckman selection model. As regards current environmental expenditure, we find that larger, exporting … firms and firms subject to the Integrated Pollution Prevention and Control directive are more likely to spend resources at …

Persistent link: https://www.econbiz.de/10010277625

Climate policy under fat-tailed risk: An application of FUND

Anthoff, David; Tol, Richard S. J. - 2010

We apply four alternative decision criteria, two old ones and two new, to the question of the appropriate level of greenhouse gas emission reduction. In all cases, we consider a uniform carbon tax that is applied to all emissions from all sectors and all countries; and that increases over time...

Persistent link: https://www.econbiz.de/10010277659