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On the distribution of lifetime wealth accumulation J. Econ. (IF 1.889) Pub Date : 2024-04-05 Hoang Khieu
I derive a stationary distribution of lifetime wealth accumulation factor in a model featuring inheritance of productivity, wealth, and health condition, where lifetime wealth is the sum of financial wealth and human wealth. Assuming ex-ante heterogeneity in the death rate, I show that the distribution of the lifetime wealth accumulation factor is constituted by a weighted sum of shape-differing Pareto
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Licensing of a new technology by an outside and uninformed licensor J. Econ. (IF 1.889) Pub Date : 2024-04-02 Manel Antelo, Antonio Sampayo
We examine the licensing decision of a non-producer innovator with a new technology that enables the manufacture of a saleable product. The technology is licensed and each user privately knows its innovation-related production cost, whereas the licensor only knows, with a certain probability, that this cost may be low (the user is efficient) or high (the user is inefficient). When a single licence
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Even imprudent risk lovers may engage in precautionary saving J. Econ. (IF 1.889) Pub Date : 2024-03-26 Marco M. Sorge
Recent developments in dynamic consumption theory have shown that risk-loving agents, much like their risk-averse analogues, can exhibit downside risk aversion (prudence) and thus demand precautionary savings. I complement this finding by showing that risk-seeking preferences also magnify the role of natural borrowing limits in shaping consumers’ behavior, causing risk lovers to increase savings against
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Seller competition on two-sided platforms J. Econ. (IF 1.889) Pub Date : 2024-03-23 Neaketa Chawla, Debasis Mondal
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The legal incidence of ad valorem taxes matters J. Econ. (IF 1.889) Pub Date : 2024-03-08 Wilfried Pauwels, Fred Schroyen
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Multiple prizes for multiple tasks: externalities and the optimal design of tournaments J. Econ. (IF 1.889) Pub Date : 2024-03-08 Susan Xu Tang, Yongsheng Xu
This paper studies a multi-task tournament in which each agent undertakes two tasks. Agents’ efforts on one of the tasks create externalities on the performances of other competing agents. We discuss the design of an optimal tournament to achieve a social optimum in the presence of such externalities. In particular, we show that the traditional single-prized tournament is unable to elicit a social
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Alternative forms of buyer power in a vertical duopoly: implications for profits, welfare, and cost pass-through J. Econ. (IF 1.889) Pub Date : 2024-03-03 Aditya Bhattacharjea, Srishti Gupta
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Can cross-holdings benefit consumers? J. Econ. (IF 1.889) Pub Date : 2024-03-02
Abstract Common wisdom suggests that cross-holdings can lead to significant output contraction, and thus hurt consumers. On the contrary, we demonstrate that cross-holdings may increase industry output and benefit consumers in an asymmetric Cournot oligopoly with the presence of a welfare-maximizing tax/subsidy policy. The government will strategically use the tax/subsidy policy to regulate the market
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Losses from horizontal merger and collusion J. Econ. (IF 1.889) Pub Date : 2024-03-01 Hamid Beladi, Arijit Mukherjee
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Entry, market structures and welfare J. Econ. (IF 1.889) Pub Date : 2024-02-19
Abstract Conventionally, entry is thought to enhance welfare by enhancing competition and hence lowering prices and increasing the output. Contrary to the conventional wisdom, working with an \(n\) -firm Cournot oligopoly set up and using the trigger strategies, we show that entry may or may not impact welfare. However, entry has the potential to alter the market structure from collusion to Cournot
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Repeated matching, career concerns, and firm size J. Econ. (IF 1.889) Pub Date : 2024-02-15 Eunhee Kim
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Collusion under product differentiation J. Econ. (IF 1.889) Pub Date : 2024-01-08 Neelanjan Sen, Urvashi Tandon, Rajit Biswas
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Degree of product differentiation, antitrust enforcement and cartel stability J. Econ. (IF 1.889) Pub Date : 2023-12-20 Williams Huamani, Marcelo José Braga, Lucas Campio Pinha
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A contest model of balancing J. Econ. (IF 1.889) Pub Date : 2023-12-19 Will Kielm
This paper considers the issue of balancing, i.e., forming an alliance against a superpower, by adopting a contest theory which is widely used in rational choice approach to international relations. The main result is that member states increase their military spending rather than reduce it after they choose balancing, implying that diffusion of responsibility does not occur in equilibrium after balancing
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Intrapersonal price discrimination and welfare in a dominant firm model J. Econ. (IF 1.889) Pub Date : 2023-12-04 Manel Antelo, Lluís Bru
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Investment externalities, bank liquidity creation, and bank failures J. Econ. (IF 1.889) Pub Date : 2023-11-24 Diemo Dietrich, Uwe Vollmer
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Technology choice, externalities in production, and a chaotic middle-income trap J. Econ. (IF 1.889) Pub Date : 2023-10-11 Takao Asano, Akihisa Shibata, Masanori Yokoo
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Government spending and monopolistic competition with heterogeneous firm productivity J. Econ. (IF 1.889) Pub Date : 2023-10-12 Cheng-wei Chang, Ting-wei Lai
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Mitigation and adaptation: an informational perspective J. Econ. (IF 1.889) Pub Date : 2023-09-28 Fuhai Hong, Yu Pang
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Effects of patent policy on growth and inequality: exogenous versus endogenous quality improvements J. Econ. (IF 1.889) Pub Date : 2023-09-26 You-Xun Lu, Ching-Chong Lai, Po-Yang Yu
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Downstream new product development and upstream process innovation J. Econ. (IF 1.889) Pub Date : 2023-09-10 Akio Kawasaki, Tomomichi Mizuno, Kazuhiro Takauchi
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Translation efficiency and directionally optimal scale J. Econ. (IF 1.889) Pub Date : 2023-09-11 Rolf Färe, Giannis Karagiannis
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Analyzing strategic behavior in a dynamic model of bargaining and war J. Econ. (IF 1.889) Pub Date : 2023-08-19 Serhat Doğan, Kerim Keskin, Çağrı Sağlam
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Imperfect collusion in monitored markets with free entry J. Econ. (IF 1.889) Pub Date : 2023-08-07 Ludwig von Auer, Tu Anh Pham
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Strategic product compatibility in network industries J. Econ. (IF 1.889) Pub Date : 2023-08-03 Domenico Buccella, Luciano Fanti, Luca Gori
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Technological knowledge and wages: from skill premium to wage polarization J. Econ. (IF 1.889) Pub Date : 2023-07-11 Oscar Afonso, Tiago Sequeira, Derick Almeida
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Cournotian duopolistic firms may be Walrasian: a case in the Gabszewicz and Vial model J. Econ. (IF 1.889) Pub Date : 2023-07-08 Francesca Busetto, Giulio Codognato, Giorgia Pavan, Simone Tonin
In this paper, we present a refreshed version of the original model proposed by Gabszewicz and Vial (J Econ Theory 4:381–400, 1972) and we use their main example to review the main theoretical issues related to the notion of Cournot-Walras equilibrium. We compute, in the Gabszewicz and Vial main example, two different Cournot-Walras equilibria associated with different normalization rules. Moreover
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The effects of downstream entry in a vertical mixed oligopoly: the role of input pricing J. Econ. (IF 1.889) Pub Date : 2023-06-26 Jiaxin Han, Chenhang Zeng
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A model of privately funded public research J. Econ. (IF 1.889) Pub Date : 2023-06-23 Thomas Greve, Hans Keiding
We present a simple model of research, in which it is possible to compare the cost of private versus public research activity. The principal aim is to find conditions under which private firms might decide to provide funding, partially or fully, for research carried out by public research organizations. Since the underlying research problem is given, differences in cost depend mainly on the contracts
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Large Tullock contests J. Econ. (IF 1.889) Pub Date : 2023-05-25 Serhat Doğan, Emin Karagözoğlu, Kerim Keskin, Çağrı Sağlam
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Endogenous capital-augmenting R&D, intersectoral labor reallocation, and the movement of the labor share J. Econ. (IF 1.889) Pub Date : 2023-05-03 Pengfei Zhang
I construct a hybrid model of endogenous and semi-endogenous growth to analyze the impact of labor reallocation between capital-augmenting R&D and final-goods production. By affecting the price of capital-intensive goods, factor-augmenting technical change or capital deepening will induce intersectoral labor reallocation between capital-augmenting R&D and final-goods production. The intersectoral labor
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Resource allocations in the best-of-k ( $$k=2,3$$ ) contests J. Econ. (IF 1.889) Pub Date : 2023-04-18 Aner Sela
We study best-of-k (\(k=2,3\)) contests with two players who have heterogeneous resource budgets that decrease within the stages proportionally to the resource allocated in the previous stages such that for each resource unit that a player allocates, he loses \(\alpha\) (the fatigue parameter) units of resource from his budget. We first analyze the players’ resource allocations and show that if the
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Incentives for prosocial behavior under reputation persistence and policy lags J. Econ. (IF 1.889) Pub Date : 2023-04-14 Francisco Candel-Sánchez, Juan Perote-Peña
In this paper we show that a policy based on incentives to promote prosocial activities can be counterproductive in a context where the agents’ reputation exhibits persistence over time and there exists a time lag between announcement of the policy and implementation. Reputation persistence in our model means that the reputation gained in past periods constrains the possibilities of changing reputation
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International licensing under an endogenous tariff in vertically-related markets J. Econ. (IF 1.889) Pub Date : 2023-04-09 Kuang-Cheng Andy Wang, Dang-Long Bui, Yi-Jie Wang, Wen-Jung Liang
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Higher tax and less work: reverse “Keep up with the Joneses” and rising inequality J. Econ. (IF 1.889) Pub Date : 2023-03-29 Felix FitzRoy, Jim Jin, Michael Nolan
To counteract excessive effort due to relative income comparison among identical agents, the literature suggests a tax response equal to the negative externality. Assuming a general income distribution, we show that an optimal tax must be higher under a general social welfare function, to not only reduce inefficiency but also inequality. We recommend a practical tax response to stronger comparison
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Common ownership in a delivered pricing duopoly J. Econ. (IF 1.889) Pub Date : 2023-03-29 Nuowen Bai, Toshihiro Matsumura
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The impact of consumer’s regret on firms’ decisions in a durable good market J. Econ. (IF 1.889) Pub Date : 2023-02-28 Qianshuo Liu
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An upstream monopoly with transport costs J. Econ. (IF 1.889) Pub Date : 2023-02-28 John S. Heywood, Zheng Wang
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More licensed technologies may make it worse: a welfare analysis of licensing vertically two-tier foreign technologies J. Econ. (IF 1.889) Pub Date : 2023-02-23 Ku-Chu Tsao, Jin-Li Hu, Hong Hwang, Yan-Shu Lin
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University dropout problems and solutions J. Econ. (IF 1.889) Pub Date : 2022-12-13 Giuseppe Bertola
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Conjectures and underpricing in repeated mass disputes with heterogeneous plaintiffs J. Econ. (IF 1.889) Pub Date : 2022-12-12 Giorgio Rampa, Margherita Saraceno
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Who should be regulated: Genuine producers or third parties? J. Econ. (IF 1.889) Pub Date : 2022-12-05 Keisuke Hattori, Keisaku Higashida
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Optimal sentencing with recurring crimes and adjudication errors J. Econ. (IF 1.889) Pub Date : 2022-12-06 Alice Guerra, Tore Nilssen
We analyze optimal sentence length for recurring crimes in the face of adjudication errors. We develop an infinite-horizon model where offenders are habitual—they repeat crimes whenever free. If apprehended, criminals may be wrongfully acquitted. Similarly, innocent people may be apprehended and wrongfully convicted. The key result shows how the risks of wrongful convictions and wrongful acquittals
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Nonlinear pricing, biased consumers, and regulatory policy J. Econ. (IF 1.889) Pub Date : 2022-11-28 Phuong Ho
Recent empirical analyses show consumers in electricity and water markets respond to average price rather than marginal price, calling for information provision policies that help correct the consumers’ bias. This paper characterizes the regulated tariff if the regulator is informed about the average-price response of consumers. I find the regulated tariff for biased consumers promotes equity gains
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The role of business locations in international patenting J. Econ. (IF 1.889) Pub Date : 2022-11-23 Di Fan, Long Zhao
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When to merge with a lower quality producer? J. Econ. (IF 1.889) Pub Date : 2022-11-03 Neelanjan Sen, Uday Bhanu Sinha
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Two-sided competition, platform services and online shopping market structure J. Econ. (IF 1.889) Pub Date : 2022-09-19 Yang Geng, Yulin Zhang, Jing Li
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On the regulation of public broadcasting J. Econ. (IF 1.889) Pub Date : 2022-09-02 Changying Li, Youping Li, Jianhu Zhang
A hallmark of public broadcasting has been the long-standing restriction on commercial advertisements, a policy that is intended to benefit the viewers. Using a model with a public broadcaster competing against a private counterpart, we show that banning commercials on the public platform actually harms the viewers. In response to this policy, the public broadcaster invests less to improve program
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Pierre-Richard Agénor, Monetary Policy and Macroprudential Regulation with Financial Frictions J. Econ. (IF 1.889) Pub Date : 2022-08-24 Nurlan Turdaliev
The book aims to provide a foundation for systematic study of the interplay between macroprudential regulation and monetary policy. It is an excellent introduction to the field and will serve as a textbook for graduate students and a reference for academic economists for many years to come. Although its focus is on middle-income countries, a large part of the book can be used in any standard graduate
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An optimal investor-state dispute settlement mechanism J. Econ. (IF 1.889) Pub Date : 2022-08-06 Frank Stähler
Many investment treaties include investor-state dispute settlement (ISDS) provisions which are supposed to protect a foreign investor against opportunistic behavior of a host country. This paper scrutinizes the optimal design of ISDS provisions that solve the holdup problem. It shows that an efficient investor protection mechanism requires an arbitrator as established in investment treaties. However
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Profit raising entry under mixed behavior J. Econ. (IF 1.889) Pub Date : 2022-07-20 Duarte Brito, Margarida Catalão-Lopes
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Should the global community welcome new oil discoveries? J. Econ. (IF 1.889) Pub Date : 2022-07-13 Sylwia Bialek, Alfons J. Weichenrieder
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Lifestyle taxes in the presence of profit shifting J. Econ. (IF 1.889) Pub Date : 2022-07-08 Rosella Levaggi, Carmen Marchiori, Paolo M. Panteghini
The consumption of unhealthy products generates significant externalities in terms of increased future health care costs to society. Lifestyle taxes are attracting increasing attention as a measure by which to discourage over-consumption and correct such externalities. This paper focuses on the trade-off that governments face in setting a lifestyle tax when the producer of the taxed good is a multinational
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Spatial competition and social welfare considering different feasible location regions J. Econ. (IF 1.889) Pub Date : 2022-07-05 Shuxiao Sun, Xiaona Zheng, Huaqing Hu, Tao Huang
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Centralized or decentralized bargaining in a vertically-related market with endogenous price/quantity choices J. Econ. (IF 1.889) Pub Date : 2022-06-16 Hong-Ren Din, Chia-Hung Sun
This research investigates the endogenous choice of centralized or decentralized bargaining and the type of strategic variables by taking into account a vertically-related market where an upstream monopolist bargains with two downstream firms via a two-part input pricing contract. We show that centralized bargaining is the unique equilibrium mode of bargaining, given Cournot or Bertrand competition
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The good, the bad and the worse: current, past and future consumption externalities and equilibrium efficiency J. Econ. (IF 1.889) Pub Date : 2022-06-02 Manuel A. Gómez
We consider an Ak model in which instantaneous utility of the representative agent depends not only on current consumption, but also on a forward-looking external reference level which is specified as an exponentially declining average of future economy-wide average consumption. We show that the decentralized equilibrium is never efficient irrespective of the specification of the utility function.
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Credible spatial preemption in a mixed oligopoly J. Econ. (IF 1.889) Pub Date : 2022-05-23 Sawoong Kang, Jeong-Yoo Kim
In this paper, we consider a public incumbent firm who produces multiple products and a private potential foreign entrant who contemplates on entering the market. Contrary to Judd (Rand J Econ 16:153–166, 1985) that preemption of the private incumbent by overcrowding the product space is not a credible threat of intense postentry competition if the exit cost of the incumbent is low, we show that if
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Correction to: Limited asset market participation and fiscal sustainability J. Econ. (IF 1.889) Pub Date : 2022-04-30 Noritaka Maebayashi,Jumpei Tanaka