This paper argues that revenue sharing is a valuable instrument in vertically separated industries when there is intrabrand competition among the downstream firms, demand is stochastic or variable, and downstream inventory is chosen before demand is realized. In these environments, the upstream...

The ability to restrict access to distribution channels or input suppliers is commonly thought to be a barrier to entry. Many have argued that a monopolist can use vertical integration as means of foreclosing entry. We consider a duopoly market and ask whether duopolists who control access to...

Consumption is partly a social activity, yet most studies of consumer behavior treat households in isolation. We investigate familial relationships in consumption patterns using a sample of parents and their children from the Panel Study of Income Dynamics. We find a positive and statistically...

It is now well known that standard asymptotic inference techniques for instrumental variable estimation perform very poorly in the presence of weak instruments. Specifically, standard asymptotic techniques give spuriously small standard errors, leading investigators to accept apparently tight...

No abstract.

This paper proposes a new approach for detecting the number of structural breaks in a time series when estimation of the breaks is performed one at the time. We consider the case of shifts in the mean of a possibly nonlinear process, allowing for dependent and heterogeneous observations. This is...

New empirical evidence with regards to the effectiveness and efficiency of Chile's capital controls is provided here, based on more and better data on the range of controls and a broad assessment of their costs and benefits. The paper concludes that capital controls have been partially effective...

Survey studies on exchange rate expectations tend to reject the rational expectations hypothesis for longer horizons. Extrapolative, adaptive and regressive expectations have been tested as alternatives, usually rejecting static expectations. The purpose of this paper is to investigate the...

No abstract.

We investigate the effect of introducing costs of complexity in the n -person unanimity bargaining game. In particular, the paper provides a justification for stationary equilibrium strategies in the class of games where complexity costs matter. As is well-known, in this game every individually...