As with other commodities, electricity is often traded on both forward and spot markets. This was initially true in the restructured California electricity ndustry from 1998 to 2000. Though the power traded in the forward and spot markets was for delivery at the same times and locations, prices...

Incompatibility in market with network effects reduces consumers? ability to ?mix and match? components offered by different sellers, but can also spur changes in product attributes that might beneÞt consumers. In this paper, we estimate the effects of incompatibility on consumers in a classic...

Estimating market power is often complicated by a lack of reliable marginal cost data. Instead, policy-makers often rely on summary statistics of the market, thought to be correlated with price cost margins? such as concentration ratios or the HHI. In many industries, these summary statistics...

Incompatibility in markets with indirect network expects can affect prices if consumers value mix and match combinations of complementary network components. In this paper, we exam- ine the effects of incompatibility using data from a classic market with indirect network effects: Automated...

In the second-half of the 1990s, the positive impact of information technology on productivity growth for the United States became apparent. The measurement of this productivity improvement depends on hedonic procedures adopted by the Bureau of Labor Statistics (BLS) and Bureau of Economic...

Understanding the sensitivity of gasoline demand to changes in prices and income has important implications for policies related to climate change, optimal taxation and national security, to name only a few. While the short-run price and income elasticities of gasoline demand in the United...

We analyze tacit collusion in an industry characterized by cyclical demand and long-run scale decisions; rms face deterministic demand cycles and choose capacity levels prior to competing in prices. Our focus is on the nature of prices. We nd that two types of price wars may exist. In one,...

If new environmental regulation imposes significant costs on firms, it should be detected in their stock prices. We use event study methodology to analyze whether President George H. Bush's Clean Air Act Amendment (CAAA) proposals of June 1989, which were quite different from what had been...