In this paper we examine the formation of International Environmental Agreements (IEAs). We provide an analytical treatment of the main model used in the literature and offer a formal solution of it (which has not been available so far), while we clarify some misconceptions that exist in the...

In contrast to the existing literature on repeated games that assumes a fixed discount factor, I study an environment in which it is more realistic to assume a fluctuating discount factor. In a repeated oligopoly, as the interest rate changes, so too does the degree to which firms discount the...

This paper analyzes cartel stability when firms are farsighted. It studies a price leadership model a la D' Aspremont et al. (1983), where the dominant cartel acts as a leader by determining the market price, while the fringe behaves competitively. According to D'Aspremont et al.'s (1983)...

This paper analyses how contractual arrangement for the sale and resale of premium programming effect competition in the pay-TV market. Competition is less effective when resale contracts specify per-subscriber fees rather than lump-sum payments. When premium programming is sold at terms similar...

We challenge the global optimality of one-shot punishments in infinitely repeated games with discounting. Specifically, we show that the stick-and-carrot punishment à la Abreu (1986) may not be globally optimal. We prove our result by investigating tacit collusion in the infinite repetition of...

We compare the social welfare generated by a domestic government in the two types of policy setups: a "commitment" regime in which the government sets its policy instrument before the strategic choice is made by the domestic firm and a "non-commitment" regime where the policy variable is set...

In the last two decades, the People's Republic of China has witnessed an explosion of NGOs. What will the implications be for state–society relations? This article, drawing upon research conducted at seven Chinese NGOs, critiques two approaches to analysing this problem: the civil society...

As firms jockey to position themselves in emerging markets, firms need to evaluate the relative attractiveness of market expansion in different countries. Since the attractiveness of a market is a function of the eventual market potential and the speed at which the product diffuses through the...

Consumer goods manufacturers usually sell their brands to consumers through common independent retailers. Theoretical research on such channel structures has analyzed the optimal behavior of channel members under alternative assumptions of manufacturer-retailer interaction (Vertical Strategic...

The purpose of this paper is to estimate the rebate-retention rate of pharmacy benefit managers (PBMs). The rebate-retention rate is the ratio of net rebates retained to gross rebates received from drug manufacturers. What isn’t retained is passed on to health care plan sponsors. A different...