This article examines "consistent" conjectural variations in an oligopoly model with a homogeneous product. A conjectural variation is consistent if it is equivalent to the optimal response of the other firms at the equilibrium defined by that conjecture. When the number of firms is fixed, we...

A sealed-bid combinatorial auction is developed for the allocation of airport time slots to competing airlines. This auction procedure permits airlines to submit various contingency bids for flight-compatible combinations of individual airport landing or take-off slots. An algorithm for solving...

Public policy toward the geographic distribution of physicians presumes that the market fails because physicians can create their own demand. A number of government interventions attempt to correct this market failure. We derive several predictions about physical location behavior from standard...

The literature to date on estimating government preference functions has followed the development of the multinominal logit model, employing data on discrete choice situations to elicit information on decisionmaking criteria. Most data available to economists on government decisionmaking are in...

This study tests several hypotheses about the relative efficiency of proprietary and nonprofit hospitals in the provision of nuclear medicine services. It also examines the effects that service rivalry among hospitals has on technical efficiency. Linear programming techniques and regression...

The purpose of this article is to define and discuss cross subsidization in pricing from a game-theoretic perspective. Cross subsidization may be said to exist when one group of customers pays more than they would if served by a separate firm producing exclusively for their demands. Previous...

In an economy with firm-specific human capital, it is shown that (i) a distribution of nonlabor income will generally induce a distribution of net returns to specific investments; (ii) at the individual level nonlabor income and net returns will be positively related over some range and...

This article characterizes necessary and sufficient conditions for heterogeneous search goods to trade at their competitive prices, and derives policy implications from these conditions. The model differs from earlier search equilibrium models in that it allows the existence of product...

The question considered in this article is how liability rules and insurance affect incentives to reduce accident risks and the allocation of such risks. This question is examined when liability is strict or based on the negligence rule; and, if first-party and liability insurance are available,...

Willig has demonstrated that any uniform price unequal to marginal cost can be Pareto dominated by a nonlinear pricing schedule--in effect by a price discrimination scheme. Resale is normally considered to be antithetical to price discrimination. This note argues that limited resale can bring...