The welfare impact of a merger involves the market power offense and the efficiency defense. Salant et al. (1983) show that mergers among symmetric firms are unprofitable except for monopolization. We characterize the limit to this merger paradox in a simple linear Cournot oligopoly with...

Evidence suggests that in developing countries, agents rely on mutual insurance agreements to deal with income or expenditure shocks. This paper analyzes which risk-sharing networks can be sustained in the long run when individuals are far- sighted, in the sense that they are able to forecast...

The aim of this paper is to investigate the implications of increased student mobility on the level of education provided after opening the borders between two similar countries. As a preliminary result, it will be shown that some public provision of mandatory education can be welfare improving...

We propose a new concept, the pairwise farsightedly stable set, in order to predict which networks may be formed among farsighted players. A set of networks G is pairto a network outside G are deterred by the threat of ending worse off or equally well wise farsightedly stable (i) if all possible...

We present a general equilibrium model of monopolistic competition with variable demand elasticities and investigate the impact of free trade on welfare and efficiency. First, contrary to the constant elasticity case, in which all gains from trade are due to increasing product diversity, our...

A set of agents with possibly different waiting costs have to receive the same service one after the other. Efficiency requires to maximize total welfare. Equity requires to at least treat equal agents equally. One must form a queue, set up monetary transfers to compensate agents having to wait,...