We analyze up- and downstream market structure and the choice of technology in a bilaterally oligopolistic industry. The distribution of industry profits between up- and downstream firms is determined by a procedure of bilateral negotiations, which is shown to generate the Shapley value....

Economic evidence that seeks to evaluate the effect of an infringement is typically presented as a point-estimate of the effect along with its statistical significance. Such evidence alone, however, is often of little value to the judge, in particular if it is impossible for her to infer whether...

The potentially anticompetitive effects of common ownership are being discussed controversially. While the US agencies still display reluctance, the Commission has already invoked common ownership has part of a theory of harm in Dow/DuPont and Bayer/Monsanto. In our paper we focus on how common...

An upstream supplier constrained by downstream competition and the threat of demand-side substitution faces a trade-off between maximizing overall joint-profit and extracting surplus. By inducing more intra-brand competition through lower wholesale prices, the supplier makes it less attractive...

This article shows that investors financing a portfolio of projects may use the depth of their financial pockets to overcome entrepreneurial incentive problems. Competition for scarce informed capital at the refinancing stage strengthens investors' bargaining positions. And yet, entrepreneurs'...

We consider an imperfectly competitive loan market in which a local (e.g., relationship) lender has valuable soft, albeit private, information, which gives her a competitive advantage vis-a-vis distant transaction lenders who provide arm's-length financing based on hard, publicly available...

This paper characterizes optimal compensation contracts in principal-agent settings where the agent's action has persistent effects. As additional informative signals arrive over time, deferred compensation has the benefit of exploiting better performance measurement which, for any information...

As manufacturers often sell their products through retailers, many manufacturer cartels directly affect retailers, who are, at least in Europe, also increasingly claiming damages. This paper points to an, to our knowledge, hitherto unexplored aspect in such cases. As store brands (or private...

We model negotiations over patent royalties in the shadow of litigation through a Nash-in-Nash approach, where outside options, triggered in case of disagreement, are derived from a subsequent game of litigation. The outcome of litigation depends both on "hard determinants", such as relative...

We present a simple model of personal finance in which an incumbent lender has an information advantage both vis-a-vis potential competitors and households. We show how in order to extract more consumer surplus an incumbent with sufficient market power may optimally engage in irresponsible...