Issue 3

March 1991

Industry Total Cost Functions and the Status of the Core

The industry total cost function gives the least total cost to an industry of producing a prescribed total output.

Testing a Model of the Kinked Demand Curve

This paper analyses survey data on the responses firms expect from their competitors when they change prices.

An Empirical Model of Capacity Expansion and Pricing in an Oligopoly with Barometric Price Leadership: A Case Study of the Newsprint Industry in North America

The weak form of oligopolistic coordination in pricing and capacity expansion of the North American newsprint industry is examined.

Synergy, Agency, and the Determinants of Premia Paid in Mergers

Hypotheses about the creation of value by mergers are tested on premia paid in a sample of 100 recent acquisitions.

The Pricing of Sports Events: Do Teams Maximize Profit?

A model of price setting behaviour by National Hockey League teams based on the assumption of profit maximization is developed, estimated, and tested.

Efficiency and Privatisation in Imperfectly Competitive Industries

If a public firm is managed less efficiently than private producers facing similar conditions, then privatisation will increase the overall efficiency of the industry and benefit society.

Do Firms Differ Much?

With firm profitability data for a cross-section of geographic markets, it is possible to determine the relative importance of firm and market effects on profitability.