This paper analyzes the effects of international openness on vertical integration decisions. A simple model is presented to represent the asset specificity problem at the heart of many industrial organization economists' analysis of vertical integration.

A simple model of indirect taxation, evasion, and enforcement is presentedin which some surprising results emerge. Because of a 'market- thinning' effect of high prices, high taxes lead to multiple equilibria (low-price black markets and high-price legal markets), and black- market comparative...

Edlund and Korn [2002] (EK) proposed that prostitutes are well paid and that the wage premium reflects foregone marriage market opportunities. However, studies of street prostitution in the U.S. have revealed only modest wages and considerable risks of disease and violence, casting doubt on...