Collusion in growing and shrinking markets: empirical evidence from experimental duopolies

We study collusive behaviour in experimental duopolies that compete in prices under dynamic demand conditions. In one treatment the demand grows at a constant rate. In the other treatment the demand declines at another constant rate. The rates are chosen so that the evolution of the demand in one case is just the reverse in time than the one for the other case. We use a box-design demand function so that there are no issues of finding and co-ordinating on the collusive price. Contrary to game-theoretic reasoning, our results show that collusion is significantly larger when the demand shrinks than when it grows. We conjecture that the prospect of rapidly declining profit opportunities exerts a disciplining effect on firms that facilitates collusion and discourages deviation.

Tacit collusion and capacity withholding in repeated uniform price auctions

This paper contributes to the study of tacit collusion by analyzing infinitely repeated multiunit uniform price auctions in a symmetric oligopoly with capacity constrained firms. Under both the Market Clearing and Maximum Accepted Price rules of determining the uniform price, we show that when each firm sets a price-quantity pair specifying the firm's minimum acceptable price and the maximum quantity the firm is willing to sell at this price, there exists a range of discount factors for which the monopoly outcome with equal sharing is sustainable in the uniform price auction, but not in the corresponding discriminatory auction. Moreover, capacity withholding may be necessary to sustain this out-come. We extend these results to the case where firms may set bids that are arbitrary step functions of price-quantity pairs with any finite number of price steps. Surprisingly, under the Maximum Accepted Price rule, firms need employ no more than two price steps to minimize the value of the discount factor

Is bundling anticompetitive?

I analyze the implications of bundling on price competition in a market for complementary products. Using a model of imperfect competition with product differentiation, I identify the incentives to bundle for two types of demand functions and study how they change with the size of the bundle. With an inelastic demand, bundling creates an advantage over uncoordinated rivals who cannot improve by bundling. I show that this no longer holds with an elastic demand. The incentives to bundle are stronger and the market outcome is symmetric bundling, the most competitive one. Profits are lowest and consumer surplus is maximized.

Price competition under cost uncertainty: A laboratory analysis

We study the relation between the number of firms and price-cost margins under price competition with uncertainty about competitors' costs. We present results of an experiment in which two, three and four identical firms repeatedly interact in this environment. In line with the theoretical prediction, market prices decrease with the number of firms, but on average stay above marginal costs. Pricing is less aggressive in duopolies than in triopolies and tetrapolies. However, independently from the number of firms, pricing is more aggressive than in the theoretical equilibrium. Both the absolute and the relative surpluses increase with the number of firms. Total surplus is close to the equilibrium level, since enhanced consumer surplus through lower prices is counteracted by occasional displacements of the most efficient firm in production.

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We study the relation between the number of firms and market power in experimental oligopolies. Price competition under decreasing returns involves a wide interval of pure strategy equilibrium prices. We present results of an experiment in which two, three and four identical firms repeatedly interact in this environment. Less collusion with more firms leads to lower average prices. With more than two firms, the predominant market price is 24. A simple imitation model captures this phenomenon. For the long run, the model predicts that prices converge to the Walrasian outcome, but for the intermediate term the modal price is 24

Economic impacts of alternative water policy scenarios in the Spanish production system: an input-output analysis

The objective of this paper is to analyse the economic impacts of alternative water policies implemented in the Spanish production system. The methodology uses two versions of the input-output price model: a competitive formulation and a mark-up formulation. The input-output framework evaluates the impact of water policy measures on production prices, consumption prices, intermediate water demand and private welfare. Our results show that a tax on the water used by sectors considerably reduces the intermediate water demand, and increases the production and consumption prices. On the other hand, according to Jevons' paradox, an improvement in technical efficiency, which leads to a reduction in the water requirements of all sectors and an increase in water production, increases the amount of water consumed. The combination of a tax on water and improved technical efficiency takes the pressure off prices and significantly reduces intermediate water demand. JEL Classification: C67 ; D57 ; Q25. Keywords: Production prices; Consumption prices; Water uses; Water policy; Water taxation.

Factores de marketing que determinan el rendimiento internacional de las empresas exportadoras españolas: enfoque sobre las empresas born-global

El estudio de las nuevas empresas se ha convertido en una parte importante de la literatura sobre la creación de empresas internacionales y dentro de este campo las empresas que empiezan la actividad internacional a poco tiempo después de su creación, nombradas empresas born-global, en adelante BG*, empiezan a despertar el interés de los investigadores. En España, hasta la fecha el número de estudios, que han investigado las empresas BG, es limitado. El objetivo de la investigación es contribuir a explicar los factores claves, principalmente de marketing, que influyen sobre el rendimiento internacional de las empresas BG españolas y las empresas exportadoras tradicionales. En base a una revisión de la literatura específica, se desarrolla un modelo para explicar los factores determinantes del rendimiento internacional de este tipo de empresas, que es comprobado en una muestra de 29 empresas BG y 26 empresas exportadoras tradicionales. Los resultados demuestran que el modelo es significativo, los factores propuestos influyen sobre el rendimiento internacional de estas empresas. Sin embargo, sólo uno de los factores propuestos, la calidad del producto, es el factor clave que más determina el rendimiento internacional de las empresas BG, y para las empresas exportadoras tradicionales es otro factor distinto, la diferenciación del producto, lo que más determina el rendimiento internacional. Conclusiones y limitaciones del estudio son presentadas junto con indicaciones para futuras investigaciones.

The Determinants of pricing in pharmaceuticals: are U.S. prices really higher than those of Canada?

This paper studies price determination in pharmaceutical markets using data for 25 countries, six years and a comprehensive list of products from the MIDAS IMS database. We show that market power and the quality of the product has a significantly positive impact of prices. The nationality of the producer appears to have a small and often insignificant impact on prices, which suggests that countries which regulates prices have relatively little power to do it in a way that advances narrow national interest. We produce a theoretical explanation for this phenomenon based on the fact that low negotiated prices in a country would have a knock-on effect in other markets, and is thus strongly resisted by producers. Another key finding is that the U.S. has prices that are not significantly higher than those of countries with similar income levels. This, together with the former observation on the effect of the nationality of producers casts doubt on the ability of countries to purs

La pera Abate Fetel: Importància, característiques i solucions tècniques al problema del quallat

El conreu del perer a Europa es caracteritza pel fet que els principals països productors aglutinen la major part de la producció d’una varietat, per exemple, el 90% de Blanquilla es produeix a Espanya, el 50% de Llimonera a França, el 100% de Rocha a Portugal i el 99% d’Abate Fetel a Itàlia. Aquesta preponderància varietal per països solament presenta una excepció; es tracta de Conference. Aquesta varietat era conreada fonamentalment a Holanda i Bèlgica, però actualment el 29% es produeix a Espanya, seguida de Bèlgica amb un 24% i Holanda i Itàlia amb un 20% cadascun. En el cas d’Espanya, Conference es va començar a introduir a finals dels anys 70, i en menys de 30 anys s’ha convertit en el major productor de pera Conference. Aquesta situació guarda un cert paral·lelisme amb la conjuntura actual d’Abate Fetel. Itàlia és el principal productor, els preus de liquidació són bastant favorables i és una varietat poc coneguda. En el cas del perer, és important remarcar la manca de noves varietats, en part degut als pocs programes de millora, la qual cosa fa que hi hagi poques alternatives per omplir el període de collita, això fa que Abate Fetel pugui ser una opció interessant també per la seva època de recol·lecció. Actualment les plantacions d’Abate Fetel a casa nostra, tret d’algunes experiències amb èxit, en general presenten dos problemes agronòmics claus. Per un costat, una entrada en producció lenta i per l’altre, baix rendiment productiu, ambdós problemes deguts a una falta de quallat dels fruits. A més, els arbres són vigorosos i molt sensibles a clorosi fèrrica. Tots aquestos elements fan que Abate Fetel sigui per una part problemàtica des del punt de vista agronòmic, però al mateix temps molt interessant des de una vessant econòmica pels elevats preus de liquidació, i més encara en l’espècie perer per la que pràcticament no hi ha innovació varietal. Des de fa 4 anys a les Estacions Experimentals de l’IRTA a Lleida i Mas Badia s’han dut a terme una sèrie de experiments per abordar els problemes d’entrada en producció lenta i rendiments productius baixos, estudiant l’efecte de l’aplicació de fitohormones i del tipus d’esporga. L’objectiu general és posar a punt les tècniques de cultiu per tal de que Abate Fetel sigui una varietat alternativa a les nostres zones de producció.

Hotel abierto. El sector hotelero ante las nuevas demandas de accesibilidad para todos (análisis, propuestas y la experiencia de 22 hoteles)

Este documento pretende ser un instrumento para favorecer la mejora de accesibilidad, pero no tiene una caracterización fácil dada la diversidad de aspectos abordados. En primer lugar parte del estudio de los condicionantes normativos y económicos que inciden sobre el mercado hotelero y los fallos o consecuencias negativas que el diseño de las normas puede tener para la penetración de la accesibilidad en los hoteles, lo que da pie a consideraciones sobre la intervención pública, la aplicabilidad de los instrumentos normativos y el control de su cumplimiento. Como documento de investigación, plantea una metodología de análisis e interpretación del proceso de incorporación de accesibilidad en los hoteles, buscando que este no se focalice exclusivamente en la reforma de espacios, sino en la consideración de los procesos y acciones que desarrolla el viajero, como forma de favorecer la continuidad y la lógica finalista de las intervenciones. Un tercer bloque viene constituido por la presentación de un amplio trabajo de campo con directores de 22 hoteles de los que 17 respondieron a un cuestionario y 10 fueron entrevistados de manera informal, puesto que sus planteamientos, conocimiento y problemática no suele analizarse suficientemente en los trabajos de accesibilidad hotelera. Por último, y a partir de las fotografías que se han podido tomar en los hoteles visitados, se plantean algunas soluciones y comentarios sencillos y visuales a problemas recogidos en la realidad, con el fin de ser didáctico y ofrecer pautas concretas de solución para cada tipo de problema detectado.

Economic impact of alternative policy measures implemented on the energy activities of the Catalan production system: an input-output analysis

The aim of the paper is to analyse the economic impact of alternative policies implemented on the energy activities of the Catalan production system. Specifically, we analyse the effects of a tax on intermediate energy uses, a reduction in the final production of energy, and a reduction in intermediate energy uses. The methodology involves two versions of the input-output price model: a competitive price formulation and a mark-up price formulation. The input-output price framework will make it possible to evaluate how the alternative measures modify production prices, consumption prices, private welfare, and intermediate energy uses. The empirical application is for the Catalan economy and uses economic data for the year 2001.

Trials, tricks and transparency: how disclosure rules affect clinical knowledge

Scandals of selective reporting of clinical trial results by pharmaceutical firms have underlined the need for more transparency in clinical trials. We provide a theoretical framework which reproduces incentives for selective reporting and yields three key implications concerning regulation. First, a compulsory clinical trial registry complemented through a voluntary clinical trial results database can implement full transparency (the existence of all trials as well as their results is known). Second, full transparency comes at a price. It has a deterrence effect on the incentives to conduct clinical trials, as it reduces the firms'gains from trials. Third, in principle, a voluntary clinical trial results database without a compulsory registry is a superior regulatory tool; but we provide some qualified support for additional compulsory registries when medical decision-makers cannot anticipate correctly the drug companies' decisions whether to conduct trials. Keywords: pharmaceutical firms, strategic information transmission, clinical trials, registries, results databases, scientific knowledge JEL classification: D72, I18, L15

"La paradisíaca estabilidad de la anteguerra". Elaboración de un índice de precios de consumo de España, 1830-1936.

Este artículo expone los aspectos básicos de la elaboración un nuevo, y auténtico, Índice de Precios de Consumo de España para el período 1830-1936. Los distintos apartados en que está organizado se dedican a definir el campo de observación y el ámbito analizados, las fuentes empleadas y la metodología utilizada, así como las similitudes y diferencias con otros índices actualmente disponibles. Contiene, asimismo, un contiene un primer y breve análisis de los resultados. La característica más sobresaliente desde la perspectiva de las tendencias de largo plazo del nuevo IPC es una gran estabilidad, quebrada de forma importante, tan sólo, durante los años 1914-1920 bajo la influencia de la Primera Guerra Mundial. La tasa de crecimiento para el conjunto del período no alcanzó siquiera el uno por cien anual, pese al cambio de nivel registrado en aquel breve brote inflacionista.

Market effects of foreign exchange coordinated intervention

In this article we develop a theoretical microstructure model of coordinated central bank intervention based on asymmetric information. We study the economic implications of coordination on some measures of market quality and show that the model predicts higher volatility and more significant exchange rate changes when central banks coordinate compared to when they intervene unilaterally. Both these predictions are in line with empirical evidence. Keywords: coordinated foreign exchange intervention, market microstructure. JEL Classification: D82, E58, F31, G14