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...

Dani Rodrik (2008) offers a provocative argument for policies that seek to maintain an "undervalued" exchange rate in order to promote economic growth. The key to his argument is the empirical evidence that he presents, indicating correlation of his measure of undervaluation with economic growth...

I present a generalization of the standard (full-information) model of state- dependent pricing in which decisions about when to review a firm's existing price must be made on the basis of imprecise awareness of current market con- ditions. The imperfect information is endogenized using a...

Peter DeMarzo, Ilan Kremer and Andrzej Skrzypacz (2005, henceforth DKS) analyzed auctions in which bidders compete in securities. They show that a steeper security leads to a higher expected revenue for the seller, and also use this to establish the revenue ranking between standard auctions. In...