This paper studies a dynamic game where each of two large blocs, of fossil fuel importers and exporters respectively, sets either taxes or quotas to exercise power in fossil-fuel markets. The main novel feature is the inclusion of a "fringe" of non- strategic (emerging and developing) countries...

Abstract Retail and wholesale gasoline prices vary over time and across geographic locations due to differences in government policies and other factors that affect demand, costs, and market power. We use a two-equation, reduced-form model to determine the relative importance of these various...

In an attempt to improve the nation's health, many U.S. policy makers have or are considering imposing taxes on the fat in food. Dairy products constitute a large portion of at home fat consumption of particularly harmful types of fat, and nearly all U.S. households consume these products. We...

Although many theoretical industrial organization models are based on the existence of a critical mass of exogenously “brand loyal” consumers, we find little empirical evidence supporting these assumptions in the orange juice retail market. There are very few loyal consumers. More importantly,...

This lecture, PowerPoint slides, and movie provide a relatively non-technical introduction to cartels. After describing the characteristics of cartels predicted by economic theory, the instructor shows a movie of the "secret" meetings of the lysine cartel. This movie demonstrates that an actual...

Capacity constraints on production have major effects on a standard monopoly, a monopoly that price discriminates between two submarkets, and a monopoly that sells in two submarkets and faces a price control in only one.