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...

Extensive multilingualism is one of the most important and fundamental principles of the European Union (EU). However, a large number of languages (currently 23) hinders communication and imposes substantial financial and legal costs. On the other hand, the reduction of the number of languages...

The policy of official multilingualism is one of the most important and fundamental principles of the Union. However, a large number of official languages imposes substantial financial, communication and legal costs. We address the merits of extensive multilingualism and formulate an analytical...