Tag: Bureau of Economics

Displaying 121 - 140 of 329 results.

Our objective is to determine the effect of ownership type (for-profit, not-for-profit, government) on firm conduct in hospital markets. Secondary objectives include estimating hospital demand systems useful for market definition and merger simulation. To this end, we estimate a...
Critical loss analysis is often used to argue that firms with large margins have more to lose from a reduction in sales and hence are less likely to increase prices. This argument ignores the fact that profit-maximizing competitors who do not coordinate their pricing only have large...
A well-known theory (Lazear, 1979) argues that wage patterns in which younger workers are underpaid relative to marginal revenue product and older workers are overpaid relative to marginal revenue product can be understood as an implicit contract designed to combat principal-agent...
A basic tenet of incentive theory states that there is a trade-off between risk and incentives. By implication, greater variation in firm profits leads to a reduction in the use of profit sharing. Surprisingly, there is little empirical evidence for this relationship. This paper...
This paper reviewed economic issues at the FTC in 2002.
The paper empirically analyzes the economic theory and intuition that the "free rider" problem will overwhelm firm-wide incentives in large firms. Kandel and Lazear (1992) claim that in a simple model of an equitable partnership, Nash equilibrium effort levels fall with the number of...
This report reviews data collected by Commission staff on the types of claims made in 11,647 advertisements taken from a sample of eight leading magazines between 1977 and 1997. The primary focus of the study is on advertising claims related to health and nutrition, but it also...
With competition in telecommunications markets a carrier relies on competing networks to complete inter-network calls originated by its customers. Regulators typically require the calling party’s network to pay a termination fee to the called party’s network equal to the terminating...
Intellectual property protection affects the manner in which multinational enterprises facilitate technology transfer from the innovating North to the developing South. Firms with products that are complex or technologically sophisticated will tend to internalize production through...
This working paper presents the findings of research on the relationship between price and quality in consumer service industries in the Washington, D.C. area. The study relies primarily upon consumer ratings of service provider quality and other data published in Washington Consumer...
The past decade has witnessed remarkable developments in the quantitative analysis of horizontal mergers. Increases in computing power and the quantity and quality of data available have substantially reduced the costs of estimating demand systems using econometric methods. Good...
This paper analyzes the use of two important human resource practices (self-managed work teams and formal training programs) in U.S. manufacturing. These practices are often used in conjunction with each other and their use is associated with improved firm performance, thus the term...
Because of its unique institutional and regulatory features, the generic drug industry provides a useful laboratory for understanding how competition evolves within a market. We exploit these features to estimate certain structural relationships in this industry, including the...
This paper examines the welfare effects of third degree price discrimination by an intermediate good monopolist selling to downstream firms with bargaining power. One of the downstream firms (the "chain store") may have a greater ability than rivals to integrate backward into the...
We use the experimental method to compare second-price auctions to "verifiable" multilateral negotiations in which the sole buyer can credibly reveal to sellers the best price offer it currently holds. We find that transaction prices are lower in verifiable multilateral negotiations...
This paper provides a broad brush treatment of the empirical economics literature regarding the effects of mergers and acquisitions. Much of the literature has direct or indirect implications for competition policy. Of most direct interest to those concerned with merger-related...
This paper analyzes the effects of antidumping and countervailing duty cases initiated from 1990 to 1997 that ended in withdrawn petitions without a suspension agreement or voluntary export restraint. Monthly import data are used to estimate the price and quantity effects of the...
Previous research on collusion in procurement markets uses static mechanism design theory to address the limitations on collusive activity imposed by asymmetric information, but in most instances it does not address how to enforce the proposed mechanisms. This paper uses repeated...
Most analysis of market power assumes that managers act as perfect agents for the shareholders. This paper relaxes this assumption. When managers of a multiproduct firm must exert unobservalbe effort to improve product quality, there will be a tension between the optimal incentive...

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