Issue 2

June 2014

The Effect of Explicit Communication on pricing: Evidence from the Collapse of a Gasoline Cartel

We study the collapse of collusion in Québec's retail gasoline market following a Competition Bureau investigation, and show that it involved two empirical regularities: high margins, and asymmet

Cross-Border Mergers and Market Segmentation

This paper shows that cross-border mergers are more likely to occur in industries which serve multiple segmented markets rather than a single integrated market, given that cost functions are strictly

Competition & Innovation: Evidence from U.S. Patent and Productivity Data

Is there any evidence that innovation and technological progress are constrained by competition and fostered by monopoly power? Our results, based on a constructed dataset of U.S.

Reverse Price Discrimination with Bayesian Buyers

This paper studies price discrimination under the situation where buyer' prior valuations are initially observable by a seller but buyers receive further information about a product or service which r

Motivating a Supplier to Test Product Quality

This paper considers a supplier that offers a buyer a new product of unknown quality.

Is the ‘Linkage Principle’ Valid? Evidence from the Field

We present field evidence concerning experienced bidders that supports the linkage principle—specifically, the prediction that in affiliated-values auction environments the expected revenues generated


Differentiated Standards and Patent Pools

Aaron Schiff and Reiko Aoki

We consider patent pool formation by owners of essential patents for differentiated standards that may be complements or substitutes in use.