We demonstrate how a non-nested statistical test developed by Vuong (1989) can be used to assess the suitability of alternate order-of-entry assumptions used for identification purposes in empirical entry models. As an example, we estimate an entry model of McDonald’s and Burger King...

Nonprofit (NP) organizations provide key social service goods but rely on donations, obtained in a competitive environment, for that provision. Yet most research focuses on competition in the output markets without considering inter- and intra-sector competition in the markets for donations....

This study examines whether nonprofits (NP) engage in ‘excessive’ fundraising (EF) relative to what may be socially optimal. The investigation requires using a structural empirical model to approximate socially optimal fundraising levels. The analysis reveals evidence of EF of up to 31% in a...

This study examines the extent to which government grants to nonprofits crowd-out or crowd-in private giving to them. Grants influence private giving via two channels: (i) “directly” through donors’ preference-induced optimal change in their giving in response to the grants; and (ii)...

The significant worldwide decline in crude oil price beginning in mid-2014 through to 2015, which resulted in substantial fuel expense reductions for airlines, but no apparent commensurate reductions in industry average airfares has caused much public debate. This paper examines the market...

The literature argues that Post and Hold (PH) laws facilitate tacit collusive price-setting behavior among suppliers of alcoholic beverages. Yet there is no explicit empirical test of this claim. We specify and estimate a structural model designed to identify the extent to which PH laws induce...

Researchers have written extensively on the impact that strategic alliances between airlines have on airfare, but little is known of the market entry deterrent impact of strategic alliances. Using a structural econometric model, this paper examines the market entry deterrent impact of...

Airlines wanting to cooperatively set prices for their international air travel service must apply to the relevant authorities for antitrust immunity (ATI). Whether consumers, on net, benefit from a grant of ATI to partner airlines has caused much public debate. This paper investigates the...

The introduction of new products has always been an important source of economic development and improvement in consumer welfare. With retail coffee data spanning five years after the single-cup brew coffee pods were introduced to grocery chains, this paper empirically studies the market effects...

This paper investigates the extent to which media coverage on organic dairy issues influences consumers’ willingness to pay (WTP) for the organic attribute of milk. We find that news with contents most often viewed as negative toward organic dairy are more powerful in decreasing consumers’...