Open Access. Powered by Scholars. Published by Universities.®

Industrial Organization Commons

Open Access. Powered by Scholars. Published by Universities.®

2946 Full-Text Articles 1908 Authors 871197 Downloads 61 Institutions

All Articles in Industrial Organization

Faceted Search

2946 full-text articles. Page 1 of 55.

Activating Actavis, Aaron Edlin, C. Scott Hemphill, Herbert J. Hovenkamp, Carl Shapiro 2017 University of California - Berkeley

Activating Actavis, Aaron Edlin, C. Scott Hemphill, Herbert J. Hovenkamp, Carl Shapiro

Aaron Edlin

In Federal Trade Commission v. Actavis, Inc., the Supreme Court provided fundamental guidance about how courts should handle antitrust challenges to reverse payment patent settlements. The Court came down strongly in favor of an antitrust solution to the problem, concluding that “an antitrust action is likely to prove more feasible administratively than the Eleventh Circuit believed.” At the same time, Justice Breyer’s majority opinion acknowledged that the Court did not answer every relevant question. The opinion closed by “leav[ing] to the lower courts the structuring of the present rule-of-reason antitrust litigation.”

This article is an effort to help ...


Actavis And Error Costs: A Reply To Critics, Aaron S. Edlin, C. Scott Hemphill, Herbert J. Hovenkamp, Carl Shapiro 2017 University of California - Berkeley

Actavis And Error Costs: A Reply To Critics, Aaron S. Edlin, C. Scott Hemphill, Herbert J. Hovenkamp, Carl Shapiro

Aaron Edlin

The Supreme Court’s opinion in Federal Trade Commission v. Actavis, Inc. provided fundamental guidance about how courts should handle antitrust challenges to reverse payment patent settlements. In our previous article, Activating Actavis, we identified and operationalized the essential features of the Court’s analysis. Our analysis has been challenged by four economists, who argue that our approach might condemn procompetitive settlements.As we explain in this reply, such settlements are feasible, however, only under special circumstances. Moreover, even where feasible, the parties would not actually choose such a settlement in equilibrium. These considerations, and others discussed in the reply ...


Horizontal Mergers, Market Structure, And Burdens Of Proof, Herbert J. Hovenkamp, Carl Shapiro 2017 University of Pennsylvania Law School

Horizontal Mergers, Market Structure, And Burdens Of Proof, Herbert J. Hovenkamp, Carl Shapiro

Faculty Scholarship

Since the Supreme Court’s landmark 1963 decision in Philadelphia National Bank, antitrust challengers have mounted prima facie cases against horizontal mergers that rested on the level and increase in market concentration caused by the merger, with proponents of the merger then permitted to rebut by providing evidence that the merger will not have the feared anticompetitive effects. Although the way that concentration is measured and the triggering levels have changed over the last half century, the basic approach has remained intact. This longstanding structural presumption, which is well supported by economic theory and evidence, has been critical to effective ...


Horizontal Shareholding And Antitrust Policy, Fiona M. Scott Morton, Herbert J. Hovenkamp 2017 Yale University

Horizontal Shareholding And Antitrust Policy, Fiona M. Scott Morton, Herbert J. Hovenkamp

Faculty Scholarship

“Horizontal shareholding” occurs when one or more equity funds own shares of competitors operating in a concentrated product market. For example, the four largest mutual fund companies might be large shareholders of all the major United States air carriers. A growing body of empirical literature concludes that under these conditions market output in the product market is lower and prices higher than they would otherwise be.

Here we consider how the antitrust laws might be applied to this practice, identifying the issues that courts are likely to encounter and attempting to anticipate litigation problems. We assume that neither the mutual ...


Archivo De Excel Con Los Datos Para Replicar Los Cálculos Del Artículo: "La Consar: Balanceando Los Intereses De Los Ahorradores Y De Las Afores", 2017 Selected Works

Archivo De Excel Con Los Datos Para Replicar Los Cálculos Del Artículo: "La Consar: Balanceando Los Intereses De Los Ahorradores Y De Las Afores"

Rodrigo Garcia-Verdu

Archivo de Excel con los datos para replicar los cálculos del artículo: "La CONSAR: balanceando los intereses de los ahorradores y de las AFORES", utilizando datos del Banco de México y de la Comisión Nacional del Sistema de Ahorro para el Retiro (CONSAR) de México.


Sorting Into And Out Of Rural And Urban Retail Markets, Georgeanne M. Artz, Liesl Eathington, Jasmine Francois, Melvin Masinde, Peter F. Orazem 2017 Iowa State University

Sorting Into And Out Of Rural And Urban Retail Markets, Georgeanne M. Artz, Liesl Eathington, Jasmine Francois, Melvin Masinde, Peter F. Orazem

Peter F. Orazem

We compare the entry decisions and relative success of rural and urban retail start-ups in Iowa from 1992 through 2011. We use an expanded variant of the pull factor idea to predict the level of local retail sales. We then examine how the factors that increase sales affect the incentive to enter or exit an urban or rural market. We show that the same factors that affect retail sales also affect new retail firm entry and retail firm exit. Our findings are consistent with a model where the very best generally skilled entrepreneurs sort into thicker, urban locations where they ...


Targeted Advertising, Platform Competition And Privacy, Henk L.M. Kox, Bas Straathof, Gijsbert Zwart 2017 KVL Economic Policy Research

Targeted Advertising, Platform Competition And Privacy, Henk L.M. Kox, Bas Straathof, Gijsbert Zwart

Henk LM Kox

Targeted advertising can benefit consumers through lower prices for access to websites. Yet, if consumers dislike that websites collect their personal information, their welfare may go down. We study competition for consumers between websites that can show targeted advertisements. We find that more targeting increases competition and reduces the websites’ profits, but yet in equilibrium websites choose maximum targeting as they cannot credibly commit to low targeting. A privacy protection policy can be beneficial for both consumers and websites. If consumers are heterogeneous in their concerns for privacy, a policy that allows choice between two levels of privacy will be ...


Sorting Into And Out Of Rural And Urban Retail Markets, Georgeanne M. Artz, Liesl Eathington, Jasmine Francois, Melvin Masinde, Peter F. Orazem 2017 Iowa State University

Sorting Into And Out Of Rural And Urban Retail Markets, Georgeanne M. Artz, Liesl Eathington, Jasmine Francois, Melvin Masinde, Peter F. Orazem

Economics Working Papers

We compare the entry decisions and relative success of rural and urban retail start-ups in Iowa from 1992 through 2011. We use an expanded variant of the pull factor idea to predict the level of local retail sales. We then examine how the factors that increase sales affect the incentive to enter or exit an urban or rural market. We show that the same factors that affect retail sales also affect new retail firm entry and retail firm exit. Our findings are consistent with a model where the very best generally skilled entrepreneurs sort into thicker, urban locations where they ...


Trade Union Trade-Offs: Unions, Voters, And The Rise Of Right-Wing Populism, Kim Gabbitas 2017 The University Of Utah

Trade Union Trade-Offs: Unions, Voters, And The Rise Of Right-Wing Populism, Kim Gabbitas

Claremont-UC Undergraduate Research Conference on the European Union

Trade union membership in European Union member states has been in decline for decades, which has many concerned about the future of workers’ rights. While existing work examines the reasons for this decline, my research shifts the focus from union density to the functions unions serve and how these functions affect and are affected by changing electoral behavior. I examine the rise of right-wing populist movements in Europe and how these movements and the challenges today’s labor unions face can be traced to the same underlying forces. I argue that, as the relevance of trade unions declines for blue-collar ...


Swing Contracts With Dynamic Reserves For Flexible Service Management, Shanshan Ma, Zhaoyu Wang, Leigh Tesfatsion 2017 Iowa State University

Swing Contracts With Dynamic Reserves For Flexible Service Management, Shanshan Ma, Zhaoyu Wang, Leigh Tesfatsion

Economics Working Papers

The increasing penetration of variable energy resources in modern electric power systems requires additional flexibility in ancillary service provision to maintain reliable and efficient grid operations. However, full recognition and appropriate compensation of this flexibility is difficult to ensure within current power market designs due to rigidities in service definitions and requirements. For example, reserve requirements (RRs) are typically set in advance at administratively determined levels. If RRs are too large, wasteful expenditures result; and, if RRs are too small, high real-time costs are incurred for peak generation and/or load curtailment. To address these problems, this paper proposes a ...


Where Prices Come From, Lester G. Telser 2017 University of Chicago

Where Prices Come From, Lester G. Telser

Lester G Telser

The software industry is the leading example in the economy where revenue depends on the cost of developing a product capable of satisfying many requirements desired by potential customers but does not incur a cost that rises with the number of buyers. Marginal cost is zero. Revenue can increase without increasing the inputs responsible for variable cost, including employment. This explains why inputs in the software industry do not match its growing size.


Essays On Growth And Input Misallocation In China, Wenya Wang 2017 The University of Western Ontario

Essays On Growth And Input Misallocation In China, Wenya Wang

Electronic Thesis and Dissertation Repository

My thesis consists of three chapters that contribute to the study of input misallocation and TFP growth in China.

In Chapter 2, I compare the misallocation of intermediate goods to those of capital and labor, which have been extensively studied in the literature. To measure misallocation, I compute the dispersion of marginal products of intermediate goods across firms, and the potential output gains by eliminating this dispersion in China Industrial Enterprise Survey (CIES) data. Although the within-industry dispersion of marginal products of intermediates is smaller than that of capital and labor, gross output and value added gains from reallocating intermediate ...


Antitrust And The Design Of Production, Herbert J. Hovenkamp 2017 University of Pennsylvania Law School

Antitrust And The Design Of Production, Herbert J. Hovenkamp

Faculty Scholarship

Both economics and antitrust policy have traditionally distinguished “production” from “distribution.” The former is concerned with how products are designed and built, the latter with how they are placed into the hands of consumers. Nothing in the language of the antitrust laws suggests much concern with production as such. Although courts do not view it that way, even per se unlawful naked price fixing among rivals is a restraint on distribution rather than production. Naked price fixing assumes a product that has already been designed and built, and the important cartel decision is what should be each firm’s output ...


Intellectual Property And Competition, Herbert J. Hovenkamp 2017 University of Pennsylvania Law School

Intellectual Property And Competition, Herbert J. Hovenkamp

Faculty Scholarship

A legal system that relies on private property rights to promote economic development must consider that profits can come from two different sources. First, both competition under constant technology and innovation promote economic growth by granting many of the returns to the successful developer. Competition and innovation both increase output, whether measured by quantity or quality. Second, however, profits can come from practices that reduce output, in some cases by reducing quantity, or in others by reducing innovation.

IP rights and competition policy were traditionally regarded as in conflict. IP rights create monopoly, which was thought to be inimical to ...


Measuring Market Power In Professional Baseball, Basketball, Football And Hockey, Gerald T. Healy III, Jing Ru Tan, Peter Orazem 2017 Iowa State University

Measuring Market Power In Professional Baseball, Basketball, Football And Hockey, Gerald T. Healy Iii, Jing Ru Tan, Peter Orazem

Economics Working Papers

Forbes Magazine estimates of annual revenues, costs and team values for professional sports teams are used to derive market power measures for teams in four major professional sports leagues: the MLB, NBA, NHL, and the NFL. Two variants of the Lerner Index, one that reflects short-term operations for the past year and another reflecting the long-run net present value of the franchise are derived over the 2006-2016 period. Only the long-run measure provides estimates that are always consistent with theoretical requirements. Analysis of variance of long-run market power shows that local market factors and past team performance have less impact ...


Braided Cobwebs: Cautionary Tales For Dynamic Retail Pricing In End-To-End Power Systems, Auswin George Thomas, Leigh Tesfatsion 2017 Siemans Industry, Mpls

Braided Cobwebs: Cautionary Tales For Dynamic Retail Pricing In End-To-End Power Systems, Auswin George Thomas, Leigh Tesfatsion

Leigh Tesfatsion

This study investigates the effects of dynamic-price retail contracting on end-to-end power system operations. Performance is evaluated by means of carefully defined metrics for system stability, market efficiency, and market participant welfare. The study is carried out for an Integrated Retail and Wholesale (IRW) Test Case for which households have smart (price-responsive) air-conditioning (A/C) systems. A simplified version of the IRW Test Case with a directly postulated linear household demand curve is first used to derive, analytically, a set of necessary and sufficient conditions for system stability under dynamic-price retail contracting. A key finding is that dynamicprice retail contracts ...


Braided Cobwebs: Cautionary Tales For Dynamic Retail Pricing In End-To-End Power Systems, Auswin George Thomas, Leigh Tesfatsion 2017 Siemans Industry, Mpls

Braided Cobwebs: Cautionary Tales For Dynamic Retail Pricing In End-To-End Power Systems, Auswin George Thomas, Leigh Tesfatsion

Economics Working Papers

This study investigates the effects of dynamic-price retail contracting on end-to-end power system operations. Performance is evaluated by means of carefully defined metrics for system stability, market efficiency, and market participant welfare. The study is carried out for an Integrated Retail and Wholesale (IRW) Test Case for which households have smart (price-responsive) air-conditioning (A/C) systems. A simplified version of the IRW Test Case with a directly postulated linear household demand curve is first used to derive, analytically, a set of necessary and sufficient conditions for system stability under dynamic-price retail contracting. A key finding is that dynamicprice retail contracts ...


Willingness-To-Pay Vs. Willingness-To-Accept: Legal And Economic Implications,, Elizabeth Hoffman, Matthew L. Spitzer 2017 Iowa State University

Willingness-To-Pay Vs. Willingness-To-Accept: Legal And Economic Implications,, Elizabeth Hoffman, Matthew L. Spitzer

Elizabeth Hoffman

Do people value commodities more when they own the commodities than when they do not? Although economic models generally presume that economic agents evaluate commodities independently of whether the agents own those commodities--the "basic independence" assumption researchers in economics and law are starting to doubt whether this assumption is true. Doubts about the soundness of the basic independence assumption challenge accepted economic doctrines. Most theoretical and applied models in economics use the basic independence assumption both to predict and to assess the operation of markets. In the relatively new discipline that combines law and economics, the basic independence assumption produces ...


The Impact Of Transportation Costs On Spatial Competition Of Grain Buyers: An Iowa Case Study, Miguel Carriquiry, Bruce A. Babcock 2017 Iowa State University

The Impact Of Transportation Costs On Spatial Competition Of Grain Buyers: An Iowa Case Study, Miguel Carriquiry, Bruce A. Babcock

Bruce Babcock

Hotelling’s classic model of spatial competition is adapted to estimate the impacts on grain price of the closure of one of three grain buyers on the Mississippi River in the vicinity of Scott County, Iowa. The customers of the buyer who is closing (River Gulf Grain Company) in Davenport, Iowa, are assumed to deliver their grain to a buyer in either Buffalo, Iowa, to the south or to a buyer in Clinton, Iowa, to the north. Calibration of Hotelling’s framework to this situation leads to an estimated decline in grain bids of 1.5¢ per bushel for the ...


Trust In Cohesive Communities, Felipe Balmaceda Assoc Prof., Juan Escobar Assistant Professor 2017 Diego Portales University

Trust In Cohesive Communities, Felipe Balmaceda Assoc Prof., Juan Escobar Assistant Professor

Felipe Balmaceda

This paper studies which social networks maximize trust and welfare when agreements are implicitly enforced. We study a repeated trust game in which trading opportunities arise exogenously and a social network determines the information each player has. We show that cohesive communities, modeled as social networks of complete components, emerge as the optimal community design. Cohesive communities generate some degree of common knowledge of transpired play that allows players to coordinate their punishments and, as a result, yield relatively high equilibrium payoffs. We also show that when news swiftly travel through the network, Pareto efficient networks are minimally connected: the ...


Digital Commons powered by bepress