A socially optimal structure of application and renewal fees for patents would encourage the maximal number of applications while reducing effective patent length. We find, however, that when patent offices are required to be self-funding, resource constraints can distort this fee structure....

Existing models in which stock markets lead to corporate 'short-termism' rely on an exogenously imposed objective for top managers. This paper endogenizes both managers' concern for short-term stock prices and the resulting distortions. The authors show that, when the manager can trade on her...

National competition policy is having a major effect on Australian industry. The Hilmer committee recommendations on infrastructure access, competitive neutrality, restructuring of public enterprises and legislative review have been accepted by all Australian governments. The underlying economic...

This paper examines how the prospect of imminent exit by a competitor in a declining industry affects the market behavior of that industry prior to exit. The author shows that 'survivor' firms have an incentive to increase their holdings of inventories and to hold excess capacity before exit...

This paper presents a simple model of a government contemplating the presale reform of a public enterprise. While the government is less efficient at such reform than the eventual owner, failure to reform may be considered an indicator of low commercial value by potential purchasers....