We analyze the equilibrium and the optimal resource allocations in a monocentric city undermonopolistic competition. Unlike the constant elasticity of substitution (CES) case, wherethe equilibrium markups are independent of the city size, we present a variable elasticity ofsubstitution (VES)...

Providing a good formulation is an important part of solving a mixed integer program.We suggest to measure the quality of a formulation by whether it is possible tostrengthen the coefficients of the formulation. Sequentially strengthening coefficientscan then be used as a tool for improving...

Recent empirical papers report a declining trend in the cumulative abnormal return (CAR)of acquirers during an M&A program. Does this necessarily imply that acquiring CEOs areinfected by hubris and are not learning from previous mistakes? We first confirm theexistence of this declining trend on...

We analyse a (differentiated good) industry where an incumbent firm owns a networkgood (essential input) and faces potential competition in the (downstream) retailmarket. Unlike the traditional approach, we consider a scenario where the decision tocompete or not in the downstream segment is...

Does legal insider trading contribute to market efficiency? Using the refinementproposed by the recent microstructure literature, we analyze the information contentof legal insider trading. Our sample encompasses 2,110 different companies subject to59,244 aggregated daily insider trades over the...