WELFARE-ENHANCING MERGERS UNDER PRODUCT DIFFERENTIATION

In this paper we consider a model of duopoly with differentiated products to examine the welfare effects of a merger between two asymmetric firms. We find that, for quantity competition, the parameter range for welfare-enhancing merger widens if the products are closer substitutes. On the other hand, mergers are never welfare enhancing in this setting when firms compete in prices. Copyright � 2010 The Authors. Journal compilation � 2010 Blackwell Publishing Ltd and The University of Manchester.

Competition Policy and Property Rights

One of the most controversial questions in current competition policy is when, if ever, should competition law require a firm with market power to share its property, notably intellectual property, with its rivals? And if supply is required, on what terms? These questions are discussed with reference to recent law cases including the EC "Microsoft" judgment of 2007 and the US "linkLine" case of 2009. The analysis focuses on whether competition law and regulation are complements or substitutes and on incentives for investment and (sequential) innovation. Copyright � The Author(s). Journal compilation � Royal Economic Society 2010.

A Revisionist Model of Hospital Licensure.

This article explores the use of a new governance approach in the context of American acute care hospital regulation, specifically focusing on the core regulatory process of licensure. This article calls for the alteration of current command and control regulations through the adoption of a four-part revisionist licensing model. The model seeks to reinvigorate the licensing process by making it not only more relevant to efficient operations, but also adaptable to current industry challenges. Based generally on alternative regulatory models such as responsive regulation, meta-regulation, and management-based regulation, the revisionist licensing proposal is driven by the broad goals of bureaucratic reduction, participatory regulation, and more focused obligations. Elements of the model include refocusing on baseline requirements, problem identification and correction, negotiated obligations, and alteration of the structure of oversight. Specific application examples are provided in the areas of charity care and health planning

Vernon's product life cycle and maritime innovation: Specialised shipping in Bergen, Norway, 1970-1987

One of the most important developments in the post-war shipping industry has been the introduction of specialised ship types that have gained market shares in the transport of a large number of cargoes. The share of specialised tonnage in the Norwegian fleet increased from less than 1% in 1960 to more than 30% by 1987. This trend towards increased specialisation did not occur to the same extent in all maritime centres. In an international perspective, Norwegian owners held a large share of the new specialised ships. This can partly be explained within the framework of the Vernon product life cycle. However, even within Norway there were substantial differences in the degree of investment in specialised tonnage. Specifically, a disproportionate share of the specialised Norwegian ships was owned by shipping companies in the city of Bergen. In 1977 Bergen companies owned around 13% of the aggregate Norwegian fleet, but more than 40% of the specialised tonnage. The Bergen presence was particularly strong in two segments; chemical tankers and open hatch bulk shipping. Through closer studies of the companies involved it becomes evident that three factors - co-operation between individual companies, vertical integration and technological innovation - can explain Bergen's strong position within specialised shipping.shipping, Norway, specialisation, product life cycle, tankers, bulk carriers,