Tag: Bureau of Economics

Industrial organization issues that are relevant to antitrust have been studied in the laboratory for over three decades, and the results of this research offer useful insights for applied work in...

Analyses of general acute care hospital mergers have traditionally defined the relevant product market as inpatient medical and surgical acute care and have generally assumed that economies of scale...

This paper models the reaction of firms to Federal Trade Commission (FTC) decisions to seek to block proposed horizontal mergers. Finns' responses to the FTC are shown to depend on a number of factors...

The creation of a charge for long distance companies to access the local telephone companies' switched network created the incentive to bypass the local switched network in order to avoid access...

Previous work on consumer search has shown that consumers facing positive search costs do not sample more than one firm; that is, no search occurs in equilibrium. This result, as well as the price...

This paper models procurement auctions when suppliers face increasing costs. It is shown than an asymmetric equilibrium exists whereby one bidder bids different prices on each project in a series of...

The survivor technique is used to examine economies of scale in the steel industry, and the results are compared to an earlier engineering approach study by Tarr. Specifically the paper focuses on the...

The Sherman Antitrust Act is over a century old, yet debate continues about its original goal. Previous authors, focusing on the substance of the 1890 debate, have reached various conclusions about...

This paper develops more general conditions for identifying when a cost increase may be profitable for incumbent firms. Given those conditions, it then shows that advertising restrictions can act as...

Anecdotal evidence reveals that an import quota is not always filled when the quota is specified in terms of a market-share limit instead of a quantity limit. In a simple Cournot duopoly, we provide a...

We examine antidumping policy in a model where a foreign firm is a monopolist in the foreign market, but competes with a native firm in the home market. An antidumping policy changes strategic...

Several recent antitrust cases indicate that courts believe the threat of entry can serve as an effective deterrent to an anticompetitive price increase. Yet there does not exist in the economic...

This paper finds that firms that have substantially increased leverage are more likely to issue convertible debt than firms that have increased leverage only slightly. Also, firms that have...

This paper examines the incentives for two-product price-regulated firms to cross-subsidize when there are no economies or diseconomies of scope. If the two products are Substitutes and each product...

This paper examines the degree of employment and hours per worker adjustment among comparable British, Canadian, and U.S. manufacturing industries. The standard adjustment cost model of dynamic labour...

This study estimates the earnings differential between college and high school graduates, denoted as the college earnings premium, from 1940 to 1988. The average measured premium exhibits a decline in...

If a firm acquires stock in a competitor, further price competition may impose a penalty in the form of devalued holdings. The purchase, by penalizing price cuts, may help to support tacit collusion...