Showing papers in "International Journal of Industrial Organization in 2008"

TL;DR: In this article, the authors analyzed the determinants of high incidence of renegotiation of infrastructure contracts in Latin America, covering the sectors of transport and water, and derived some policy implications of their work.

TL;DR: In this article, the effect of patent protection on R&D was analyzed with a model linking a firm's research effort with its decision to patent, and the authors found that patent protection provides a positive premium on average in only a few industries and that the premium varies across industries and with firm size.

TL;DR: In this article, the impact of information flows or spillovers on R&D cooperation was explored using firm level data, and the role of the traditionally considered factors (firm size, cost and risk sharing, and complementarities) was explored.

TL;DR: In this article, the authors analyze whether the two tasks of building infrastructures which are socially useful in providing public services and managing these assets should be bundled or not, and study how incentive schemes are modified under the threat of capture of the decision-makers.

TL;DR: In this article, the authors derive optimal public accounting rules when the public official's choice among projects is biased by ideology or social ties or because of pandering to special interests, and give particular emphasis to how the rules should constrain the official's incentive to understate the costs of her pet projects.

TL;DR: In this paper, the authors compare the advertising intensity and content of programming in a market with competing media platforms and compare the welfare properties of the two different schemes, and show that if viewers strongly dislike advertising, advertising intensity is greater under free-to-air television.

TL;DR: In this article, the authors show that standard conclusions about duopoly competition can be reversed when the production of key inputs is outsourced to a vertically integrated retail competitor with upstream market power.

TL;DR: In this paper, the authors use a model of vertical relations between two congestible airports and an airline oligopoly to examine, both analytically and numerically, how deregulation may affect airports prices and capacities and find that unregulated profit-maximizing airports would overcharge for the congestion externality and, compared to the first-best, would induce large allocative inefficiencies and dead-weight losses.

TL;DR: In this paper, the effects of generic entry on post-patent price competition for 18 prescription drugs recently exposed to competition were investigated using an independent, validating test of the generic competition paradox.

TL;DR: In this article, the authors explore the strategic rationale for giving managers incentives based on market share, motivated by evidence from executive compensation practice in the automotive and investment banking industries, and find that when competing in strategic substitutes, players will wish to commit to aggressive conduct, but also make their behaviour less manipulable by rivals.

TL;DR: The authors study the effect of an exogenous shock to product quality on prices in the airline industry and find that prices fall by $1.42 on average for each additional minute of flight delay and that the price response is substantially larger in more competitive markets.

TL;DR: This article used a data set consisting of a three year panel of prices from a sample of gasoline stations located in suburban Washington DC and a corresponding census of the region's stations to develop three new empirical findings about retail gasoline pricing.

TL;DR: In this article, the authors used extended ARCH and GARCH models to examine the differences in the behavior of the first two moments of the price distribution during collusive and competitive phases of two recently discovered conspiracies, citric acid and lysine.

TL;DR: In this paper, the impact of the honor-all-cards (HAC) rule on the social welfare of payment card associations is analyzed using a simple model with two types of transactions subject to different competitive pressures.

TL;DR: In this article, the authors extend the existing literature on exclusive dealing to take into account that buyers signing exclusive deals are typically competing firms that are differentiated from the perspective of their customers, and they show that provided such downstream firms are not too differentiated or provided upstream firms can compete in two-part tariffs, exclusive dealing forecloses entry to a more efficient rival.

TL;DR: In this paper, a new nationally representative survey is used to transform consumer responses to open-ended questions into product rankings and estimate a characteristics-based rank-order logit model in order to quantify consumer substitution among payment methods.

TL;DR: This article decompose the extent to which quantity discounts for paper towels are consistent with second degree price discrimination as opposed to cost differences across sizes, assuming that firms offer only one package size or charge uniform prices across sizes.

TL;DR: In this paper, the effects of ownership and benchmark competition on regulatory compliance of community water systems were investigated and it was found that ownership does not generally affect compliance with the Safe Drinking Water Act (SDWA).

TL;DR: In this paper, the role of pricing as a signal of environmental performance for polluting products to green consumers was studied and it was shown that high environmental performance is signaled through a high price when less polluted products are more costly to produce.

TL;DR: In this paper, a two-product firm that decides on the quality of each product is considered, and it is shown that if the probability that low quality will be detected is in an intermediate range, the firm produces high quality under umbrella branding whereas it would sell low quality in the absence of umbrella branding.

TL;DR: In this paper, the authors model the competitive effects of the introduction of a GPO into a market within which the preferences of the GPO's members are horizontally differentiated, and show that when two suppliers compete using such schedules, the results are far more competitive in comparison to simple Bertrand-Nash competition with linear tariffs.

TL;DR: In this paper, the effects of introducing competition for local passenger railway markets in the German state of Baden-Wurttemberg were investigated. And the results suggest that the competitively procured lines enjoyed a stronger growth of the frequency of service than those that were not procured competitively, even after controlling for various line characteristics that might have had an independent influence on the operator.

TL;DR: In this paper, the authors consider bundling of two products as a strategy to avoid entry in a differentiated product market and show that the incumbent optimally bundles irrespective of entry, and that the bundling blockades entry and reduces welfare.

TL;DR: In this paper, the authors examine the role of uncertainty in the tradeoff between unilateral effects and efficiency gains and show that convexity prevails in a number of situations, including the most general linear demand model.

TL;DR: In this article, the authors used data from one conservation reserve program (CRP) auction to elicit farmers' attitudes toward the environment by analyzing their bids, and they showed that farmers condition their bids on the strength of their environmental scores and that they value environmental benefits, especially those that increase future soil productivity of their land.

TL;DR: In this paper, the authors show that maximal skewed pricing is profit maximizing under constant elasticity of demand, where the most elastic side of the market is used to generate maximum demand by providing it with platform services at the lowest possible price.

TL;DR: In this article, the role of the consumers in offering forward hedging contracts is investigated and it is shown that, in some circumstances, contracts lead to social welfare maximization when consumer demand is price sensitive.

TL;DR: In this article, Pinkse et al. employed a sample of supermarket scanner data to estimate a large brand-level demand system for beer in the U.S. using the Distance Metric method of Pinkse, Slade and Brett.

TL;DR: For example, this article showed that after 1985, the likelihood of a price announcement is largely driven by the length of time between announcements, rather than cost or demand factors, suggesting that the price announcements after 1985 stem from cartel meetings.

TL;DR: In this paper, the authors studied the behavior of the patent owners facing the decision to create a patent fence, defined as a portfolio of non-improving substi- tute patents.