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- Experimental Economics (2)
- Industrial Organisation (2)
- Innovation and Spillovers (2)
- Auctions (1)
- Comparative Statics (1)
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Articles 1 - 5 of 5
Full-Text Articles in Social and Behavioral Sciences
Auctions Vs Negotiations In Public Procurement: Which Works Better?, Armin Schmutzler, Rafael Lalive
Auctions Vs Negotiations In Public Procurement: Which Works Better?, Armin Schmutzler, Rafael Lalive
Armin Schmutzler
Public agencies rely on two key modes to procure goods and services: auctions and direct negotiations. The relative advantages of these two modes are still imperfectly understood. This paper therefore studies public procurement of regional passenger railway services in Germany, where regional agencies can use auctions and negotiations to procure regional passenger rail services. This offers the unique opportunity to assess the two procurement modes within the same institutional and legal framework. We first characterize the decisions of the agency in a simple reduced form framework of negotiations and auctions. This analysis suggests accounting for the endogeneity of the choice …
A Unified Approach To Comparative Statics Puzzles In Experiments, Armin Schmutzler
A Unified Approach To Comparative Statics Puzzles In Experiments, Armin Schmutzler
Armin Schmutzler
The paper shows that several game-theoretic solution concepts provide similar comparative statics predictions over a wide class of games. I start from the observation that, in many experiments, behavior is affected by parameter shifts that leave the Nash equilibrium unchanged. I explain the direction of change with a heuristic structural approach, using properties such as strategic complementarities and increasing differences. I show that the approach is consistent with general comparative statics results for (i) the Nash equilibrium of a game with perturbed payoff functions, (ii) the quantal response equilibrium, (iii) level-k reasoning. I also relate the structural approach to equilibrium …
Foreign Direct Investment And R&D Offshoring, Hans Gersbach, Armin Schmutzler
Foreign Direct Investment And R&D Offshoring, Hans Gersbach, Armin Schmutzler
Armin Schmutzler
We analyze a two-country model of Foreign Direct Investment (FDI). Two firms, each of which is originally situated in only one of the two countries, first decide whether to build a plant in the foreign country. Then, they decide whether to relocate R&D activities. Finally, they engage in product-market competition. Our main points are: first, FDI liberalization causes a relocation of R&D activities if intrafirm communication is sufficiently well developed, external spillovers are substantial, competition is not too strong and foreign markets are not too small. Second, such a relocation of R&D activities will usually nevertheless increase domestic welfare since …
Is There A U-Shaped Relation Between Competition And Investment?, Armin Schmutzler, Dario Sacco
Is There A U-Shaped Relation Between Competition And Investment?, Armin Schmutzler, Dario Sacco
Armin Schmutzler
We consider a two-stage game with cost-reducing investments followed by a linear differentiated Cournot duopoly. With competition inversely parameterized by the extent of product differentiation, investment in the subgame-perfect equilibrium is typically minimal for intermediate levels of competition. Laboratory experiments partly confirm the U-shape in a reduced one-stage version of the game. In the two-stage version, there is no evidence for positive effects of moving from intermediate to intense competition.
Local Transportation Policy And The Environment, Armin Schmutzler
Local Transportation Policy And The Environment, Armin Schmutzler
Armin Schmutzler
The paper introduces a simple framework for analyzing the environmental effects of local transportation policies, and it reviews some evidence. In several cases, subsidies for local public transportion have led to substantial reductions in road transportation and have thereby reduced externalities. Some but not all estimates suggest positive overall welfare effects of such policies. In the rare cases where road pricing has been applied, it has helped to reduce automobile transportation, and it has led to environmental improvements. The experience with specific driving restrictions like "days without cars" and "low emission zones" has been mixed. Local transportation policy can have …