Working Papers

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

This paper examines whether workers are less willing to accept defined benefit pension plans (a type of implicit contract) from firms that have reduced either worker compensation or employment. Worker

Studies of tax incidence usually present estimates based on annual data and then simply note that estimates based on lifetime information would be preferable, but are precluded by data limitations

We examine quality choice in a duopoly model with one foreign and one domestic firm. where consumers show similar preferences for quality but different preferences for brands. Firms set quality prior

This paper explains the anticompetitive consequences of horizontal restraints by analyzing how restrictions affect the cost conditions faced by individual members of the group. Our analysis assumes

This paper develops a measure for the change in producer welfare when both factor and product prices are changed simultaneously. Such a measure is useful when performing economic analysis of proposed

Does the extent of injury suffered by a domestic industry from unfair imports depend on the type of competition that exists between domestic and foreign firms? Is injury more severe when domestic and

The 1980's saw the evolution of a vertical antitrust theory often referred to as "Raising Rivals' Costs." Our analysis examines this theory and its robustness with respect to a number of assumptions

Prior analyses have found little incentive for merger in the absence of efficiency gains. Either merger is unprofitable, or outside firms earn higher profits than the merged parties. We examine merger

This paper examines the incentives for merger and collusion in a market where firms offer differentiated products and serve specific customer segments. The nature of interaction among firms largely

Competitive access has been an important antitrust issue for the ICC since the Staggers Act of 1980 largely deregulated the railroad industry. This paper looks at the reasons why competitive access

In the 1980s, the antitrust enforcement agencies have rejected the idea that mergers in declining industries should receive special consideration. This paper develops reasons why declining industry

In a recent book, Cline estimated that current trade restrictions on textiles generate a net efficiency loss of $811 million annually, while those on apparel involve a loss of $7.3 billion. This paper

This paper provides a critique of a recent paper in the Southern Economic Journal concerning the effectiveness of Certificate of Need (CON) regulation in controlling hospital costs. ("Regulation

St. Louis Terminal Railroad (1912) has been cited by a number of authors as a case of vertical foreclosure by competitive rivals. The alleged foreclosure has been used as a basis for the "Essential

This study examines the relationship between diversification and predation. Unlike previous analyses, the focus is placed on the role of the firm's investments in sunk cost assets. Unlike the single

Tariffs and quotas are compared to assess their effects on firm behavior in a two-stage Cournot duopoly game, where R&D (or capital) is chosen initially and output is selected subsequently. In this