We are the first to confirm that sufficient cost convexity in a Stackelberg model generates profitable mergers between two leaders and between two followers. Moreover, the degree of convexity required for leaders to merge is generally far smaller than that required for followers. Most...

We are the first to confirm that sufficient cost convexity in a Stackelberg model generates profitable mergers between two leaders and between two followers. Moreover, the degree of convexity required for leaders to merge is generally far smaller than that required for followers. Most...

Returning to the contention that convex costs provide a resolution to the merger paradox, we show that for reasonable degrees of convexity, the minimum market share needed for merger to be profitable remains close to that associated with linear costs. Moreover, convex costs do not eliminate the...

This paper examines the interdependence between imperfect competition and emis-sions trading in a two-sector (clean and dirty) economy. We compare the welfare implica-tions of an absolute cap-and-trade scheme (permit trading) with a relative intensity-basedscheme (credit trading). We nd...

This paper examines the interdependence between imperfect competition and emis- sions trading in a two-sector (clean and dirty) economy. We compare the welfare implica- tions of an absolute cap-and-trade scheme (permit trading) with a relative intensity-based scheme (credit trading). We nd...

A longstanding result from decades of research on the provision of global public goods, is that stable coalitions of cooperating countries are small when the benefits to cooperating are large. This "paradox" of cooperation is seemingly overcome in a recent paper "The Strategic Dimension of...

A longstanding result from decades of research on the provision of global public goods, is that stable coalitions of cooperating countries are small when the benefits to cooperating are large. This "paradox" of cooperation is seemingly overcome in a recent paper "The Strategic Dimension of...

Multi-pollutant interactions can have crucial implications for the design and performance of environmental policy targeting single pollutants. This paper presents a two-region model where a global pollutant (CO2) and local pollutant (SO2) are produced jointly. The interaction between SO2 and CO2...