International price discrimination in the European car market: An econometric model of oligopoly behavior with product differentiation

Car Industry;Oligopoly;Product Differentiation;Econometric Models;Price Discrimination

Presents or investments? An experimental analysis

commodities;investment;experimental design;game theory

Investment and Usage of New Technologies: Evidence from a Shared ATM Network

When new technologies become available, it is not only essential that firms have the correct investment incentives, but often also that consumers make the proper usage decisions. This paper studies investment and usage in a shared ATM network. Be- cause all banks coordinate their ATM investment decisions, there is no strategic but only a pure cost-saving incentive to invest. At the same time, because retail fees for cash withdrawals are regulated to zero at both branches and ATMs, consumers may not have the proper incentives to substitute their transactions from branches to the available ATMs. We develop an empirical model of coordinated investment and cash withdrawal demand, where banks choose the number of ATMs and consumers decide whether to withdraw cash at ATMs or branches. We find that banks substantially underinvested in the shared ATM network and thus provided too little geographic coverage. This contrasts with earlier findings of strategic overinvestment in networks with partial incompatibility. Furthermore, we find that consumer usage of the avail- able ATM network is too low because of the zero retail fees for cash withdrawals at branches. A direct promotion of investment (through subsidies or other means) can improve welfare, but the introduction of retail fees on cash withdrawals at branches would be more e¤ective, even if this does not encourage investment per se.

Mi Vida Enterprises v. Mark A. Steen-Adams v. Nancy Ciddio Steen-Adams and Charles A. Steen, III : Brief of Appellant

BRIEF OF APPELLANTS APPEAL FROM A FINAL ORDER OF THE SEVENTH DISTRICT COURT HONORABLE LYLE ANDERSON, PRESIDING

The Diffusion of Mobile Telecommunications Services in the European Union

technology diffusion;regulation and competition;mobile telecommuinications

Localized Competition, Multimarket Operation and Collusive Behavior

This paper studies collusive behavior in a repeated oligopoly model with localized competition, also reinterpreted as a model of multimarket operation. Private information about the rivals' past actions naturally arises from these product market structures. The resulting communication problems imply that firms should not adopt strategies with too severe punishments. Infinite grim punishments may be too severe, for large discount factors. The standard stick-and-carrot punishments from the perfect public information model are always too severe, for all discount factors. Modified stick-and-carrot punishments can still be used, though for a smaller range of discount factors than the standard stick-and-carrot punishments