This paper demonstrates how, by introducing a generic version of its previously patented product, a branded firm can influence the equilibrium in the generic segment of the market for the product. This in turn can increase the firm's profits from selling the branded version. We then use...

This paper demonstrates how, by introducing a generic version of its previously-patented product, a branded firm can influence the equilibrium in the generic segment of the market for the product. This in turn can increase the firm’s profits from selling the branded version. We then use...

Well-established economic principles show that regulated monopolies may have an incentive to act discriminatorily against rivals of their unregulated affiliates. This paper discusses some recent empirical evidence regarding discrimination in telecommunications. Specifically, it surveys anecdotal...

Because of its unique institutional and regulatory features, the generic drug industry provides a useful laboratory for understanding how competition evolves. We exploit these features to estimate a system of structural relationships in this industry, including the relationship between price and...

In the past decade, many of the world's largest financial exchanges have demutualized, i.e., converted from mutual, not‐for‐profit organizations to publicly‐traded, for‐profit firms. In most cases, these exchanges have substantial responsibilities with respect to enforcing various...

Some of the world’s largest futures exchanges impose daily limits on the price movements of individual contracts. Using data from three of the most active US commodity futures contracts, we show that these price restrictions are largely ineffective because traders are able to take similar...

The empirical and theoretical results in this paper cast doubt upon the explanation of socialism advanced by Gifford and Kenney. The empirical finding that socialism is inversely related to the degree of political instability is directly contrary to the prediction of their model. Further, we...

Trading by commodity index traders (CITs) has become an important aspect of financial markets over the past 10 years. We develop an equilibrium model of trader behavior that relates uninformed CIT trading to futures prices. A key implication of the model is that CIT trading reduces the cost of...