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This paper reports the results of an experiment designed to assess the ability of an incumbent seller to profitably foreclose a market with exclusive contracts. We use the strategic environment described by Rasmusen, Ramseyer, and Wiley (1991) and Segal and Whinston (2000) where entry is...
Persistent link: https://www.econbiz.de/10012759185
the policies they can pursue are constrained by the identity of the coalition members. In the model, a formateur picks a … coalition and negotiates for the allocation of the surplus it is expected to generate. The formateur is free to change … generalized version of a Nash Bargaining Solution in which —in contrast to the standard solution— the coalition is endogenous and …
Persistent link: https://www.econbiz.de/10012890469
During contractual negotiations, parties often make (reliance) expenditures that would increase the surplus should a contract be made. This paper analyzes decisions to invest in pre-contractual reliance under alternative legal regimes. Investments in reliance will be socially suboptimal in the...
Persistent link: https://www.econbiz.de/10013220927
The basic form of economic exchange is a bilateral relationship between buyer and seller. If economic conditions are common knowledge there is no problem in principle to determine the efficient quantity to trade. But if benefits are known only to the buyer and costs are known only to the seller...
Persistent link: https://www.econbiz.de/10013222660
I examine Ronald Coase's criticism of standard regulatory and tax policies to address environmental externalities. I …
Persistent link: https://www.econbiz.de/10013000533
pessimistic conclusions from the theory: only few players form a coalition when the institution prescribes the full …, both along the extensive and intensive margin when coalition members can each suggest a minimum contribution level with the …
Persistent link: https://www.econbiz.de/10013143768
coalitions to provide public goods. Theory is ambiguous on the equilibrium coalition size and contribution rates. We examine the … emergence of coalitions, their size, and how uncertainty in public goods provision affects contribution levels and coalition … coalition to provide the good. Contrary a core theoretical result, we find that coalition size increases when the public good …
Persistent link: https://www.econbiz.de/10013153581
In this paper we examine exclusion accomplished by a coalition of firms—frequently, a coalition of suppliers and … 1880s, which was controlled by a complex coalition of refiners and wholesalers. We assess the incentives and conduct of the …
Persistent link: https://www.econbiz.de/10012870053
determine conditions for their uniqueness. We show how this framework can be applied in political economy, coalition formation …
Persistent link: https://www.econbiz.de/10012770673
We study the formation of a ruling coalition in political environments. Each individual is endowed with a level of … political power. The ruling coalition consists of a subset of the individuals in the society and decides the distribution of … resources. A ruling coalition needs to contain enough powerful members to win against any alternative coalition that may …
Persistent link: https://www.econbiz.de/10012778980