Tag: Bureau of Economics

Displaying 321 - 340 of 459 results.

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 charges that were substantially above cost. This paper explores the implications of a...
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, including the structural merits of the FTC challenge, the efficiencies potentially...
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 charged, are independent of the magnitude of search costs. I develop a model in which...
This report presents empirical evidence on the likely consumer injury associated with department store reference pricing, the common pricing strategy in which sale prices are contrasted prominently with regular prices in newspaper advertising. The study concludes that although...
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 goal. Instead of concentrating on the congressional debates, this paper examines...
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 conventional integrated steel mill of over 1 million tons a year. The results are...
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 simultaneous auctions, while its competitor bids the same price on each project. This...
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 rent increasing costs and raise the profits of association members.  As with previous...
The study examines the aftermath of mergers in three industries: titanium dioxide, cement, and corrugated paperboard. The study finds a mixture of results with likely pro-competitive outcomes in cement and paperboard, and a potentially large anti-competitive outcome in titanium...
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 theoretical rationale for this outcome. Imposing a market-share quota eliminates...
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 behavior by giving firms an incentive to manipulate the price differential between home and...
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 literature a general model that explains how entry can be such a threat, given the...
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 substantially decreased leverage are more likely to issue convertible debt than firms that...
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 demand, assuming nonmyopic firm expectations of the forcing variables, serves as...
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 faces a separate regulatory constraint, after merger the product with the looser...
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 between firms. This paper establishes how the partial acquisition of outstanding...
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 the 1940s, gradual increases in the 1950s and 1960s, a decline in the 1970s and a...
The study evaluates the desirability of import tariffs on crude oil and refined petroleum products. Such tariffs would cost consumers between $2 and $5 per dollar of revenue raised. Excise taxes, on the other hand, would cost consumers $1.05 to $1.13 per dollar of revenue raised...
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. This paper presents estimates of property tax incidence in both an annual and life-...
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 to choosing price; and. the interaction between firms and policymakers assumes...

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