Traditional modelling of mergers has the merged firms (insiders) cooperate and maximize joint profits. This approach has several unappealing results in quantity-setting games, for example, mergers typically are not profitable for insiders, but are profitable for non-merging firms (outsiders). We...

Consider a new export market in which firms can invest in quality but may fail to achieve quality. Quality of the export good, then, varies across firms, having endogenous (whether to invest) and exogenous (determined by nature) aspects. Previous works suggest that the market outcome and...

Compared with the social optimum, a monopolist usually sells too little. This result seemingly includes the case of a lab that licences its patented cost innovation: <link>Katz and Shapiro (1986)</link> find `conditions under which &lsqb;the lab&rsqb; will issue fewer than the socially optimal number of licences.'...

The authors examine the implications of exchange rate swings in interntional markets, paying particular attention to the importance of firm flexibility. They use the term flexibility to refer to the ease with which firms can respond to exchange rate swings. There are two kinds of flexibility...

In this paper, the authors examine the nature of the relationship between bargaining structure and strike activity. In particular, they focus on the implications of the fact that the amount of information revealed by a union's actions depends on the bargaining environment in which it operates....