United States antitrust merger analysis has recently focused on simulating the unilateral effects of mergers. We develop a model to simulate the unilateral price increase from a merger in an auction market. We illustrate our results in the context of hospital mergers in the U.S., and calibrate...

We model “dumping” as price discrimination assuming profit maximization by Korean firms prior to OECD and WTO membership. We show that the ratio of domestic prices, PD, to export prices, PX, can be derived from domestic and export price-cost margins. Accounting mismeasurements of costs...

A structural event study methodology accounts for the interaction of two M&A effects: synergy (total value) and dominance (bargaining power). This interaction jointly (simultaneously) determines the parties' abnormal returns. An application in the context of corporate governance illustrates our...

The Old Empirical Industrial Organization (OEIO) used OLS to analyze the correlation between concentration and industry profits. There are two competing hypotheses--collusion (Bain 1951) or superior competitors (Demsetz 1973). The New Empirical IO (NEIO) undertakes industry specific structural...

In this article advertiser supported media, such as television, are analyzed as an industry selling audiences to advertisers. A simple stylized model is used to demonstrate that increased competition leads to less of a price decline (in extreme cases, maybe even a price increase) than would be...

We consider price setting strategic behavior in the market for quality-differentiated goods. In his classic analysis Ricardo showed that at the competition equilibrium the price of marginal unit is driven to zero. An oligopolistic market structure leads to a radically different equilibrium in...