It is necessary for economies to transition to a circular economy (CE). What particularly inhibits the implementation of the CE in linear economies is market failures, whose theoretical principles are embedded in modern welfare economics and neoclassical economics. Market failures shape the...

The existing literature on withdrawal from foreign markets leaves several questions unanswered. We propose alignment between cohesive learning from failure and the intrinsic motivation to reemerge after failure. The study contends that failure is not considered an ultimate demise but as a...

This study delves into a market characterized by vertical product differentiation. Product qualities are represented on a one-dimensional interval scale. The research investigates the equilibrium within a monopoly scenario, considering a production cost that is strictly convex. The monopoly...

The Coase theorem has been shrouded in ambiguity and confusion throughout its life, this despite the prominent role that it plays in economic and legal analysis. As this paper demonstrates, this is no less true of the path by which Coase came to the result that bears his name. Drawing on...

We investigate the causal impact of public discourse on socially responsible market behavior. Across three laboratory experiments, having market participants engage in public discourse generally increases market social responsibility. These positive impacts are robust to variation in several...

The European Union's economic vitality heavily relies on small and medium-sized enterprises (SMEs), which drive innovation, productivity, and strategic technology dissemination. Despite their importance, SMEs face significant challenges, particularly in accessing finance, which limits their...

We investigate policies for increasing recycling to facilitate decarbonization within the basic material sector, including market-based policies, such as carbon pricing, advanced disposal fee and minimum recycled content requirement, and non-market policies, such as product design standard. We...

We propose an EU Safe Generative AI Innovation Program to address a market failure in generative AI development. While developers can capture significant value from generative AI capability improvements, they bear only a fraction of potential safety failure costs, which leads to underinvestment...

The Chinese government distributes enormous government subsidies (GSs) to Chinese companies to achieve high-quality development goals. This study investigates the relationship between GSs and green innovation (GINN) in Chinese listed companies, focusing on the moderating role of marketization....

The EU internal market is based on the presumption of unhindered movement. National restrictions, which limit free movement, are perceived as antipodes of the internal market, which limit its successful functioning. This paper takes a different view and approaches the internal market from the...

Both Google Android and Google Search (Shopping), along with other ongoing digital market antitrust enforcement actions, are based on foreclosure conduct that has raised difficult doctrinal questions for courts, regulators, and scholars. This emerging form of foreclosure, which some have termed...

We propose an urban land use model to discuss the conversion of customary agricultural land to formal and informal residential land in a developing country city. Because customary land sales are insecure, migrant buyers face a risk of eviction, which affects land markets in non-trivial ways....

This paper revisits the path by which Coase developed the result now known as the Coase theorem, including the famous meeting at the home of Aaron Director during which Coase ‘converted’ a group of Chicago economists to his way of thinking. Drawing on published and archival sources, we...

The United States spends substantially more on health care than most developed countries, yet leaves a greater share of the population uninsured. We suggest that incremental insurance expansions focused on addressing market failures will propagate inefficiencies and are not likely to facilitate...

We report on our analysis findings in the remainder of this report. In this section, we have reported primarily on the 2020 year and compared those results to the 2018 reported data. Typically, the reported results are presented directly for 2020 and in brackets for the 2018 data. We comment on...

Does market exposure shape civic values and rules that constrain opportunistic behavior and foster generalized cooperation? I investigate this question using a natural experiment on market location from Ethiopia, where exchange is prone to cooperation problems from asymmetric information and...

This paper discusses the externalities and market failures in cryptocurrency markets. In particular, I highlight the significant environmental externalities created by Proof-of-Work (PoW) cryptocurrencies, the most prominent of which is Bitcoin. The main goals of this paper are to quantify these...

Ambitious plans to decarbonise electricity will require high levels of variable renewable electricity (VRE). At high VRE penetration, the surplus that cannot be exported must be curtailed. Marginal curtailment is 3-4+ times average curtailment for wind, higher for solar PV, but even in...

1. The State Monopoly on Violence -- 2. Market Failures and Institutions -- 3. Innovation and the Capitalist Revolution -- 4. Monopoly Power and Competition -- 5. Who Pays for Fixed Costs? -- 6. Insurance versus Incentives -- 7. Reputations and Implicit Contracts -- 8. Adverse Selection -- 9....

In his latest book, Ethics for Capitalists, Joseph Heath draws on his many years of thinking about business ethics to propose, as the book’s subtitle indicates, "a systematic approach to business ethics, competition, and market failure." He develops his argument carefully, draws on a wealth of...