In empirical studies of sequential auctions of identical objects, prices have been found to decline. We study auctions of ancient Chinese porcelain recovered from shipwrecks. In these auctions, there are very long sequences of lots of identical objects. We find that the average price decline is...

We discuss the welfare effects of bundling two products offered by two symmetric firms. We first show that, in terms of welfare, a monopoly does better than a duopoly in which each firm sell its good and that a monopoly selling the bundle does better than if it sells the bundle and the two goods...

We analyze the empirical relationship between journal prices, their quality measured by their citation counts, their age, as well as conduct of publishers. The database covers 22 scientific fields and over 2600 among the most highly reputed and cited journals in 2003. We show that (a) for-profit...

Revenue sharing can be used to discourage low tax regions from competing for capital and firms with high tax regions. However, with heterogeneous regions, revenue sharing involves net transfers across regions and creates a moral-hazard problem - that is, regions may want to invest less in market...

We introduce a model of oligopolistic price setting where products are characterized by style and quality. Producers are identified by a unique style, and are able to price discriminate among consumers using quality. We show that, in contrast to Mussa and Rosen's work on the discriminating...

In this paper we consider a model of oligopolistic competition where firms make a two-dimensional product line decision. They choose a location in style space, thus, inducing horizontal differentiation, and produce different qualities (a product line) of a given good (vertical differentiation),...