A method of estimating market structure and tax incidence, when data are available for some firms and the total industry, is applied to the domestic Japanese television market. This market is shown to be oligopolistic with a tax incidence on consumers greater than 100 percent. Tax incidence...

A linear-quadratic dynamic oligopoly model is used to estimate the competitiveness of the rice export market. The model nests various market structures using either open-loop or feedback strategies. The estimated feedback model implies a less competitive market structure than the estimated...

The strategic effects of subsidies on output and subsidies on investment differ substantially in dynamic models where a government's commitment ability is limited. Output subsidies remain effective even as the period of commitment vanishes but investment subsidies may become completely...

Using a maximum entropy technique, the authors estimate the market shares of each firm in an industry using the available government summary statistics such as the four-firm concentration ratio and the Herfindahl-Hirschmann Index. They show that their technique is very effective in estimating...

This paper provides a closed-form rule for dynamic hedging with production uncertainty. The rule is obtained by considering a discret e time control problem, in the limit, as the interval between hedging opportunities goes to zero. Price may be expected to increase or decrease so that a...

If capital lowers marginal cost and a firm with more capital gets a bigger share of the surplus in merger bargaining, then the equilibrium price with a merger may be lower than without a merger. If entry is restricted, the level of industry profits minus investment costs may be higher if mergers...

This paper examines the dynamically consistent price path for a new product monopolist, unable to commit to future prices, when consumers must incur setup costs of adopting the product. The authors find that setup costs give rise to a price path with introductory sales: along the path, periods...

The author studies a perfect-information, rational expectations Markov equilibrium for the situation where a monopolist extracts a nonrenewable resource that is converted to a durable good. Even if short-run extraction costs are constant, the Coase Conjectur e fails, provided that the...