Issue 2

June 2009
Articles: 

PRODUCT VARIETY AND COMPETITION IN THE RETAIL MARKET FOR EYEGLASSES

I use original data on eyewear retailers in a cross-section of U.S. markets to study how firms' product range choices vary with the degree of local competition.

A RENT EXTRACTION THEORY OF RIGHT OF FIRST REFUSAL

When a seller encumbers a property with a right of first refusal, whenever a third party offers to purchase the property, the right-holder can acquire the property by simply matching the third party's

YOU ARE ONE OF US NOW! HOW DO SHARE PRICES OF RIVALS REACT TO PRIVATIZATION?

By using a unique data set from the Turkish cement industry, we analyze the impact of privatization on the market value of rival firms.

PLATFORM COMPETITION WITH ‘MUST-HAVE’ COMPONENTS

In platform-component systems with indirect network effects, some ‘must-have’ components are so popular with consumers that they create large, discrete indirect network effects when they become availa

REAL AND VIRTUAL COMPETITION

Goods sold by electronic firms are not perfect substitutes for otherwise identical goods sold by their offline counterparts.

CREDIBLE RETALIATORY ENTRY AND STRATEGIC TOE-HOLDS

The anticipated profits from entry by an established firm into a new market will depend on how incumbents in that market are expected to respond.

ESTIMATING MARK-UPS FROM PLANT-LEVEL DATA

Typical plant-level data sets do not report quantities.

Notes: 

PRICE DISCRIMINATION IN STACKELBERG COMPETITION

Levent Kutlu

We examine the effects of price discrimination in the Stackelberg competition model for the linear demand case. We show that the leader does not use any price discrimination at all.