Tag: Bureau of Economics

Displaying 81 - 100 of 330 results.

This working paper presents the findings of copy test research on consumer perceptions of heart-health claims in print advertisements for a fictitious cooking oil low in saturated fat, and a vegetable oil spread containing no trans fatty acids. FDA regulations currently ban...
Aggregate demand models typically assume that consumers choose between all available products. Since consumers may be unwilling to search across every store in a given market for a particular item, this assumption is problematic when product assortments vary across stores. Using...
Economics at the Federal Trade Commission (FTC) supports both the competition and consumer protection missions of the agency. In this year'’s essay we discuss a range of activities focusing on data-intensive antitrust cases in the hospital and consumer products industries. We also...
This paper explores the relationship between competition and hospital charity care by analyzing changes in charity care associated with changes in a hospital’s competitive environment (due to mergers and divestitures), using hospital financial and discharge data from Florida and...
In their famous 1984 paper, Shapiro & Stiglitz developed what has become the canonical efficiency wage model. In their model, all workers are paid an efficiency wage, and no one shirks. Their model is based on the assumption that shirking workers are completely unproductive. In...
This paper explores a firm's incentive to technologically tie when R&D is important and finds that technological tying increases innovation, which is an efficiency not considered in other tying models. Intuitively, technological tying protects the seller from aftermarket entry,...
I examine online and offline prices for popular disposable contact lenses. Idiosyncratic features of this market make it likely that offline firms set prices on the assumption that most of their customers are unaware of online prices. Consistent with lower online search costs,...
The most popular methodology used by the U.S. International Trade Commission (USITC) from 1989 through 1994 to determine whether unfairly traded imports injure competing domestic industries was known as the bifurcated approach. Injury determinations based on this approach have been...
I analyze the effect on consumer welfare of settlements of patent infringement lawsuits that consist of a royalty-free license for delayed entry by a potentially infringing horizontal competitor of the incumbent patent-holder. Settlements that split the remaining patent life in a way...
This paper develops and estimates a dynamic equilibrium model of the market for commercial aircraft. Airline choices are modeled as the solution to a discrete time dynamic programming problem, where in each period, each airline chooses one or more of various models of new and used...
This paper examines whether the likelihood that an individual will experience identity theft varies with the individual’s demographic characteristics, using data from the Federal Trade Commission’s 2003 survey on identity theft. The likelihood that a person will be a victim of...
This working paper presents the findings of copy test research on consumer perceptions of food and dietary supplement print advertisements containing qualified health claims for diet-disease relationships that lack a high level of scientific support. The research was motivated by...
Marathon-Ashland Petroleum’s (MAP) 1999 acquisition of the Michigan assets of Ultramar Diamond Shamrock (UDS) increased MAP’s share of terminal storage in Michigan from about 16 percent to about 25 percent and increased the share of gasoline stations bearing a MAP brand from about 16...
Economics at the Federal Trade Commission (FTC) covers both the antitrust and consumer protection missions. In this year’'s essay, we focus mainly on the competition-side of the agency. Drawing on a wealth of recent research, we provide descriptive and analytical information about...
It is widely believed that larger customers in a market can secure lower prices than smaller customers. This paper presents conditions under which risk averse sellers, who can distinguish larger customers from smaller customers, but who cannot observe customers’ valuations, have an...
In this paper, we examine price movements over time around the collapse of a bid-rigging conspiracy. While the mean decreased by sixteen percent, the standard deviation increased by over two hundred percent. We hypothesize that conspiracies in other industries would exhibit similar...
Individual Federal Trade Commission (FTC) cases invariably raise broad questions about consumers, markets, and effective enforcement policy. Recent consumer protection cases raise questions about information regulation. Horizontal merger enforcement has recently focused on...
This paper estimates a duration model of late stage drug development in the pharmaceutical industry using publicly available data. The paper presents descriptive results on the estimated relationship between a particular drug's characteristics such as therapy category, route of...
  The Federal Trade Commission today issued a report by staff of the Bureau of Economics entitled, “The Petroleum Industry: Mergers, Structural Change, and Antitrust Enforcement.” The report presents a detailed overview of structural changes in the petroleum industry and describes Commission law...

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