Issue 2

June 2005
Articles: 

MARKET POWER AND PRICE MOVEMENTS OVER THE BUSINESS CYCLE

This paper develops and tests implications of an oligopoly-pricing model.

THE FAILING FIRM DEFENSE

This paper evaluates the welfare consequences of the failing firm defense (FFD) in the EU and U.S. merger laws.

COMPETITION OR PREDATION? CONSUMER COORDINATION, STRATEGIC PRICING AND PRICE FLOORS IN NETWORK MARKETS

Although network effects can make predation more likely to succeed, we find that the leading anti-predation rules may lower or raise efficiency and consumer welfare in network markets.

MERCHANT TRANSMISSION INVESTMENT

We examine the performance attributes of a merchant transmission investment framework that relies on ‘market driven’ investment to increase transmission network capacity needed to support competitive

OPERATING SYSTEM PRICES IN THE HOME PC MARKET

Because the demand for OS is a derived demand revealed through the demand for PCs and because its elasticity is relatively small, the profit-maximizing price of DOS/WIN that would result from a static