Increasing competition and reducing market power are core interests of economists, regulators and the public to maximise aggregate social welfare. Low prices are achieved through intense competition in the retail gasoline market. The absence of fierce competition is referred to as market power....

The model of perfect competition is one of the most famous, most important, and most misunderstood concepts in economics. Rather than aiming to be a full-blown model of real-world competitive markets, the perfect competition model isolates the decentralized coordination mechanism inherent in all...

We consider a large rational expectations economy built on Han and Yang (2013) where traders can share information with each other via an information network and investigate the impact of network connectedness on market equilibrium outcomes. We find that in the equilibrium with endogenous...

Perfectly competitive market is often used in economics textbook as an idealized model for understanding microeconomics issue. But, is it realisable in practice, and crucially, under what kind of scenario and condition? The answer is: perfectly competitive market does not exist in most market...

Markets, likened to an invisible hand, often appear to contradict econometric assumptions that rule out spillovers of one person's treatment on another's outcomes. This paper provides a simple statistical framework highlighting that controls are indirectly affected by the treatment through the...