This paper develops a search-matching model, where producers provide effort to find customers (e.g. in form of advertising and marketing expenditures). Firms form long-term contractual relationships and bargain over prices. The price bargain results in mark up pricing above marginal cost. The...

This paper uses survey evidence to analyse the response of Luxembourg firms to the economic and financial crisis in 2008-2009. Approximately three out of four firms reported that they were negatively affected by the crisis, mostly due to a fall in demand, but also due to financing difficulties...

Two-way trade in (almost) homogenous products has ambiguous welfare effects if entry is restricted. We examine Swedish imports of bottled water to investigate whether transport cost losses from trade outweigh the partial equilibrium gains from trade (stronger competition and more brands to...