Issue 2

December 1987

The Economic Efficiency of Sunday Trading Restrictions

Restriction of shop opening hours is current, but controversial, practice in Britain and most other European countries.

Product Differentiation and Industrial Structure

Some recent literature on "vertical product differentiation" has developed the idea that if the nature of technology and tastes in some industry take a certain form, then the industry must necessarily

Life After Takeover

Economic consequences of takeovers are investigated by analyzing profitability of enterprises acquired as a direct or indirect ("white knight") result of tender offers.

Costs of Maintaining a Cartel

The costs of operating a cartel are determined by the effort spent on policing member firms and errors in detection of cheaters. An output review is modeled that may be used with trigger pricing.

Market Growth, Economies of Scale, and Plant Size in the Chemical Processing Industries

What factors determine the size of new industrial plants?

Purposive Diversification of R & D in Manufacturing

The R & D diversification in manufacturing of large US firms is found to be purposive, exploiting complementarities of various research activities and forming groups of related industry categories

Strategic Product Choice in Differentiated Markets

Widespread diversification of firms compels viewing them as a portfolio of activities rather than as entities competing independently in separate markets.

On Stackelberg Equilibria with Differentiated Products: The Critical Role of the Strategy Space

Comparing the Nash and Stackelberg equilibria in a differentiated products model under price and for quantity strategy spaces, it is shown that, whatever the role (leader, follower, Nash competitor),

Optimal Price-Quality Schedules and Sustainability

This paper derives a general solution for optimal price-quality scheduling under imperfect information.

On Existence of Location Equilibria in the 3-Firm Hotelling Problem

If consumers have a positive probability to purchase from each firm, then centrally agglomerated and/or symmetric dispersed location equilibria may exist in the 3-firm Hotelling problem.

Measuring R & D in Small Firms: How Much are we Missing?

The OECD surveys on R & D are considerably biased towards underestimating R & D in small firms.