This paper introduces the Werden-Froeb Index (WFI) to assist in evaluating merger-specific efficiencies in horizontal mergers. The index measures the weighted average reduction in marginal costs required to restore pre-merger equilibrium prices and quantities after the (full or partial) merger...

In repeated number guessing games choices typically converge quickly to the Nash equilibrium. In positive expectations feedback experiments, however, convergence to the equilibrium price tends to be very slow, if it occurs at all. Both types of experimental designs have been suggested as...

We present results on expectation formation in a controlled experimental environment. In each period subjects are asked to predict the next price of a risky asset. The realized market price is derived from an unknown market equilibrium equation with feedback from individual forecasts. In most...

A well-known result in spatial voting theory is that, for a one-dimensional issue space and under certain mild conditions, political parties choose platforms coinciding with the median voter's position. This result does not carry over to multi-dimensional issue spaces however, since then an...

In its landmark ruling in Illinois Brick Co. v. Illinois, the U.S. Supreme Court restricted the right to sue for private damages from violations of section 4 of the Clayton Act to direct purchasers. Despite the fact that typically antitrust injury is, at least in part, passed on to firms lower...

We consider a standard two generations version of the overlapping generations model. Agents predict inflation rates on the basis of a perceived law of motion, which is estimated by running a linear regression on past inflation rates. We introduce the notion of Beliefs Equilibrium. At such an...