This paper demonstrates how, by introducing a generic version of its previously patented product, a branded firm can influence the equilibrium in the generic segment of the market for the product. This in turn can increase the firm's profits from selling the branded version. We then use...

Well-established economic principles show that regulated monopolies may have an incentive to act discriminatorily against rivals of their unregulated affiliates. This paper discusses some recent empirical evidence regarding discrimination in telecommunications. Specifically, it surveys anecdotal...

Because of its unique institutional and regulatory features, the generic drug industry provides a useful laboratory for understanding how competition evolves. We exploit these features to estimate a system of structural relationships in this industry, including the relationship between price and...

This paper demonstrates how, by introducing a generic version of its previously-patented product, a branded firm can influence the equilibrium in the generic segment of the market for the product. This in turn can increase the firm’s profits from selling the branded version. We then use...

This note reexamines the incentive of a regulated monopolist with an unregulated, vertically-related affiliate to discriminate against rivals of the affiliate. Taking Weisman's (1995) model as a framework, I show that his analysis understates the incentive to discriminate. My analysis shows that...

This paper develops a model of competition among multiproduct retailers that is consistent with observed pricing regularities, such as the facts that virtually all products have large mass points in their price distributions and that most deviations fall below these mass points. The basis of the...

Trading by commodity index traders (CITs) has become an important aspect of financial markets over the past 10 years. We develop an equilibrium model of trader behavior that relates uninformed CIT trading to futures prices. A key implication of the model is that CIT trading reduces the cost of...

In the past decade, many of the world's largest financial exchanges have demutualized, i.e., converted from mutual, not‐for‐profit organizations to publicly‐traded, for‐profit firms. In most cases, these exchanges have substantial responsibilities with respect to enforcing various...

The empirical and theoretical results in this paper cast doubt upon the explanation of socialism advanced by Gifford and Kenney. The empirical finding that socialism is inversely related to the degree of political instability is directly contrary to the prediction of their model. Further, we...