We study firms' incentives to offer profit-sharing schemes in a unionized differentiated goods duopoly in which firms bargain with a sector-wide union or firm-specific unions over the selected remuneration schemes. We show that unions always prefer to form a sector-wide union and conduct...

We study the incentives for horizontal upstream mergers in a quantity-setting vertically related industry, under bargain and endogenous contract types. We show that the contract types used could have important consequences for the equilibrium market structure and vice versa. If it is the...

We consider the strategic implications of the disclosure regime of vertical contract terms by endogenizing them. The latter are exogenously set in the literature either as observable or as secret. By endogenizing the disclosure regime we show that the mode and intensity of the downstream...

We consider a homogenous good Cournot duopoly, in which a firm owns acost-reducing technology and has a non-controlling share over its rival. Weshow that partial passive ownership holdings may induce licensing via afixed fee and increase consumer surplus, tax revenues, and social...

Greece is at a decisive moment. It has to choose between defaulting and an economic program of structural reforms, privatization, efficient tax collection, and shrinking of the public sector. Unilateral suspension of debt payments would be an economic catastrophe for Greeks, resulting in deep...

We consider the learning curve in an industry with free entry and exit, and price-taking firms. A unique equilibrium exists if the fixed or entry cost is positive. While equilibrium profits are zero, mature firms earn rents on their learning, and no firm can profitably enter after the date the...

We investigate the effect of potential entry on the formation and stability of R&D networks considering farsighted firms. We show that the presence of a potential entrant often alters the incentives of incumbent firms to establish a link. In particular, incumbent firms may choose to form an...

We study the implications of different contractual forms in a market with an incumbent upstream monopolist and free downstream entry. We show that traditional conclusions regarding the desirability of linear contracts radically change when entry in the downstream market is endogenous rather than...

The paper explores the political economy of the 'minimum-wage institution (MWI)' in an internationally integrated product market. The authors consider a two-sector Economic Union (EU) with a perfectly competitive agricultural sector and a unionized oligopolistic manufacturing sector in which...