The nature, and normative properties, of competition in health care markets has long been the subject of much debate. In this paper we consider what the optimal benchmark is in the presence of moral hazard effects on consumption due to health insurance. Intuitively, it seems that imperfect...

This is the first installment of a two-part commentary on the New Brandeis School in Antitrust. In this first part, I examine why the New Brandeis School is correct to reject the consumer welfare standard. Instead of arguing, as the New Brandesians do, that the consumer welfare standard leads to...

We compare monopoly profit, consumer surplus, and total welfare associated with three commonly-used tying strategies: no tying, pure tying, and mixed tying. Whereas previous literature focused mainly on profit comparisons, this paper evaluates the relationship between component production costs...

This paper studies third degree price discrimination in a monopolistically competitive market. When the number of firms is fixed, price discrimination raises firm profit and reduces consumer welfare relative to uniform pricing. In the long run, the equilibrium product variety under price...

Incomplete market insurance gives rise to nonmarket coinsurance arrangements. We find that the effort altruistically-linked individuals take to avoid an accident increases with the degree of altruism. If the degree of altruism is sufficiently high, an economy with nonmarket insurance yields...