During the past decade most Latin American countries reformed and liberalized their electric sectors. This paper examines these reforms, providing a critical examination of the effects. Late reformers learnt from the experience of earlier reforming countries, and in particular from the Chilean...

This paper uses a dynamic model of trade with specific factors of production to analyze the evolution of an economy that opens to international trade. Each period the allocation of labor is determines by previous period investment. The model cannot adapt instantaneously to free trade conditions,...

This paper reviews competition policies in Chile. It argues that competition policy should strive to reduce entry, fixed and variable costs where that is technically feasible; reduce the costs of reallocating resources across firms and sectors; and foster tough price competition. It also shows...

Long-term relationships between business firms and investment banks are pervasive in developed security markets and there is evidence that better monitoring and information result from these relationships. Therefore, security markets should allocate resources better when an investment banking...

While some countries have unbundled distribution and retailing, skeptics argue that the physical attributes of electricity make retailers redundant. Instead, it is claimed that passive pass through of wholesale prices plus regulate charges for transmission and distribution success for customers...

A large literature asserts that standard essential patents (SEPs) allow their owners to “hold up” innovation by charging fees that exceed their incremental contribution to a final product. We evaluate two central, interrelated predictions of this SEP hold-up hypothesis: (1) SEP-reliant...

In this paper we systematically study the vertical integration and sabotage decisions of a regulated bottleneck monopoly that sells access to independent downstream firms. Our results reconciliate a set of seemingly contradictory findings of the literature. We show that unless the monopoly's...

We study how the sequence of financing of Ramp;D varies according to the ease with which property rights over knowledge can be defined. There are two financiers, a venture capitalist and a corporation. The knowledge acquired in costly research becomes embodied in the researcher's human capital,...

We study how the sequence of financing of Ramp;D varies according to the ease with which property rights over knowledge can be defined. There are two financiers, a venture capitalist and a corporation. The knowledge acquired in costly research becomes embodied in the researcher's human capital,...