Many industries experience periods of excess capacity. Explanations include firms deterring rivals, anticipating future demand, or the lumpiness of investment. This paper identifies capacity investment intended to deter rivals separately from investment driven by other factors. To achieve this...

This article examines whether the player draft used since 1986 in the Australian Football League has caused clubs to tank; that is, to seek to lose matches to obtain improved draft choices. A comparison of clubs’ performances in regular season matches played before and after introduction of...

In standard discrete choice models, adding options cannot increase the choice probability of an existing alternative. We use this observation to construct a simple nonparametric specification test by exploiting variation in the choice sets individuals face. We use a multiple testing procedure to...

Macroeconomists have long debated the aggregate effects of anti-competitive provisions under the “Codes of Fair Conduct” promulgated by the National Industrial Recovery Act (NIRA). Despite the emphasis on these provisions, there is only limited evidence documenting any actual effects at the...

Theoretical work has suggested that contact between firms in different markets can facilitate tacit collusion. Empirical work on this link has been limited. We address the paucity of empirical evidence with a novel plant-level dataset for the cement industry during the Great Depression. We find...