Summary In this paper a standard two-stage Coumot-oligopoly game is used to analyze some aspects of the economics and politics of international common property. In stage 1, governments which host firms using the commons decide on optimal input taxes. In stage 2, profit maximizing firms choose...

This paper examines the behavior of the regret-averse firm under exchange rate uncertainty. Regret-averse preferences are characterized by a modified utility function that includes disutility from having chosen ex-post suboptimal alternatives. We show that the conventional results that the firm...

Using 1992 data of 1490 banks covering about 40% of German banking, we specify a multi-product translog cost function and follow the “thick frontier”-approach to control for cost inefficiency when evaluating the technology of banking. Scale economies are found to exist up to a size of about...

In a simple three-stage model of an international Cournot duopoly, optimal strategic trade policy is shown to be time inconsistent. If the domestic government first announces a production subsidy, firms then irrevocably commit resources to R&D, and finally play their output game, there is an...