Issue 2

June 1999

The Welfare Losses From Price-Matching PolicIes

Several recent papers argue that price-matching policies raise equilibrium prices.

Market Structure, R&D and Advertising in the Pharmaceutical Industry

Recent developments in the literature on market structure have allowed the generation of a few key testable predictions from the theory of strategic behaviour.

Informative Externalities and Pricing in Regulated Multiproduct Industries

This paper addresses the issue of how to organise a two-product industry with interdependent demands when the regulator cannot observe the demand level of the goods produced.

Advantageous Semi-Collusion

The textbook view that cartels increase industry profits and lower consumer welfare ignores the effects of competition in other activities.

Myopic Corporate Behaviour with Optimal Management Incentives

Existing models in which stock markets lead to corporate ‘short-termism’ rely on an exogenously imposed objective for top managers.