In a model with linear demands and constant variable costs, it is shown that a welfare gain is made by restricting the relative rather than absolute prices that a monopolist can charge for a range of
We consider the implications of game-theoretic models for the competitive or collusive nature of basing point pricing (BPP).
The paper proves the existence of a symmetric equilibrium with multiproduct firms using a nested logit model of demand.
Regulators sometimes review a regulated firm's input decisions in retrospect (i.e. with "20-20 hindsight") and punish bad outcomes rather than bad decisions.
This paper investigates the effects of profit-sharing on wages and employment by comparing the labour market behaviour of the John Lewis Partnership with that of four main competitors.
International calls include consumption and financial externalities.
The effects of production joint ventures on their parents' profits and total industry output are analyzed.
If capital lowers marginal cost and a firm with more capital gets a bigger share of the surplus in merger bargaining, then the equilibrium price with a merger may be lower than without a merger.