Issue 3

September 1996

A Robust Methodology for Ramsey Pricing with an Application to UK Postal Services

The policy relevance of Ramsey pricing calculations naturally turns on their robustness.

Patent Races and Optimal Patent Breadth and Length

This paper reexamines the issue of optimal patent breadth in extending the earlier literature to the case where many firms race for a patent.

Competition Effects of Price Liberalization in Insurance

Insurance services have a prominent role in modern societies. Empirical evaluation of market interactions in insurance is, however, scarce. To fill this gap, two models are proposed.

Trade Unions and Firms' Product Market Power

A production function model with efficient bargaining between oligopolistic firms and unions is developed to distinguish between product market power and union power in capturing economic rents.

Competition Under Financial Distress

This paper presents a link between product market competition and the financial situation--in particular asset composition--of firms, based on capital market imperfections.

Negotiation and Renegotiation of Optimal Financial Contracts Under the Threat of Predation

The paper examines the effect of renegotiation on the ability of financial contracts between a lender and entrant to deter an incumbent's predation.

Quality Choice in Models of Vertical Differentiation

In this note, we offer the complete characterization of quality choices in a duopoly model of vertical product differentiation where firms simultaneously choose the quality of the product and then com