On the competitive effects of divisionalization

In this paper, we assume that firms can create independent divisions which compete in quantities in a homogeneous good market. Assuming identical firms and constant returns to scale, we prove that the strategic interaction of firms yields Perfect Competition if the number of firms is beyond some critical level. Assuming a fixed cost per firm and an upper bound on the maximum number of divisions, we show that when this upper bound tends to infinity and the fixed cost tends to zero, market equilibrium may yield either Perfect Competition or a Natural Oligopoly.Publicad

Second Best Trade Policies in Cournot Oligopoly

In this paper we study the optimal import policy in an oligopolistic market with a given number of quantity-setting firms. In the absence of fixed costs, we show that if the policy instrument is an import quota, the optimal policy is either free trade or autarky, while if the instrument is a tariff the optimal policy is neither free trade nor autarky. In the case of fixed costs, we show that contrary to the traditional protectionist argument, a restrictive import policy might increase domestic welfare by increasing domestic consumers’ surplus, instead of increasing domestic profits.Publicad

- DELEGATION AND ENDOGENOUS MERGERS IN OLIGOPOLY

In this paper we consider the interactions between the use of strategic delegation and mergers in the context of a Cournot oligopoly with linear demand and cost functions. It is assumed that, after the merging process is completed, the owner of every independent firm decides its managerial incentive for his manager. In the context of endogenous mergers through acquisitions, we show that the incentive to merge, under delegation, is considerably increased with respect to the setting without delegation. In fact, we prove that the level of welfare in the setting with delgation is, in some cases, lower than the corresponding under non delegation.Strategic delegation, endoqenous mergers, cournot oligopoly

Cómo formar la segunda naturaleza. Notas antropológicas acerca de la educación de los hábitos

Este trabajo intenta llamar la atención sobre un concepto algo descuidado en las reflexiones teóricas sobre la educación, a menudo excesivamente centradas en aspectos instrumentales de la enseñanza. Se trata de la noción de hábito. Si la educación tiene algo que ver con la ayuda al crecimiento de la persona, ha de comprenderse ante todo como la promoción de ciertos hábitos intelectuales y morales que hacen más plena nuestra vida. El artículo aborda sumariamente el concepto de persona, y después se ocupa del crecimiento personal a través del hábito. Los hábitos son una prolongación de nuestra naturaleza primaria, hacen más “habitable” nuestra existencia y nos suministran una autodisponibilidad que nos hace más libres

Merger policy in innovative industries

We analyze optimal merger policy in R&D-intensive industries with product innovation aiming to improve the quality of products. Our results suggest that a permissive merger policy is rarely optimal in high-tech industries when the antitrust authority considers a welfare standard that balances the impact of mergers on con- sumers’ surplus and firms’ profits. In particular, relative to a benchmark where the effects from R&D are absent, we show that the optimal merger policy should not be substantially more permissive in the presence of those effects from R&D.info:eu-repo/semantics/publishedVersio