Tag: Bureau of Economics

This study measures the retail and wholesale price effects in Louisville, Kentucky resulting from the Marathon/Ashland (MAP) joint venture. MAP was an early transaction in the recent era of petroleum...

This paper presents a retrospective case study of merger efficiencies in the context of the merger of the Union Pacific Railroad Co. and the Southern Pacific Transportation Co., as approved by the...

We review explanations for two controversial vertical restraints commonly used in gasoline marketing: price zones and territorial restrictions. After a discussion of the relevant empirical and...

This report presents the results of a study that uses a controlled experiment with over 500 recent mortgage customers to examine the mortgage broker compensation disclosure proposed by the Department...

The paper shows that the answer is no. Holmstrom (1979) and Shavell (1979) show that the sellthe firm contract does not achieve the first best when the principal and the agent have different...

This paper introduces means of quantifying global trend of proliferation in antitrust laws, and introduces measures to assess the presence of such laws across a large set of countries. In particular...

This paper examines the output and profit effects of horizontal mergers between upstream firms in intermediate goods markets. We consider market settings in which the upstream firms sell...

The off-net-cost pricing principle argues that under a broad range of environments a positive “access” charge paid by originating networks to interconnected terminating networks would cause networks...

PUBLISHED AS: Avoiding Aggregation Bias in Demand Estimation: A Multivariate Promotional Disaggregation Approach Estimating cross-brand promotional effects with aggregate data requires knowledge of...

This paper highlights some of the staff analyses on the Royal Caribbean/Princess/Carnival investigations.

Zone pricing in wholesale gasoline markets is a contentious topic in the public policy debate. Refiners contend that they use zone pricing to be competitive with local rivals. Critics claim that zone...

PUBLISHED AS: Estimating the Cost of New Drug Development: Is it really $802m? This paper analyses a detailed data set on drugs in human clinical trials around the world between 1989 and 2002. The...

Across many forms of rent seeking contests, the impact of risk aversion on equilibrium play is indeterminate. We design an experiment to compare individuals’ decisions across three contests which are...

Is the second best outcome of static agency models renegotiation proof? In models with one period of renegotiation, Fudenberg and Tirole (1990) answer no when the principal makes the offer, while Ma...

PUBLISHED AS: Market and Non-Market Barriers to Internet Wine Sales: The Case of Virginia This study investigates the effects of the Commonwealth of Virginia’s ban on direct wine shipments from out-of...

PUBLISHED AS: The Loss Leader Is a Turkey: Targeted Discounts from Multi-product Competitors When some customers are more profitable to serve than others, one might expect sellers to compete more...

A well-known theory (Lazear, 1979) argues that wage patterns in which younger workers are underpaid relative to marginal revenue product and older workers are overpaid relative to marginal revenue...

This paper analyzes the value of using data from on-line auctions to determine product market definitions and competitive effects of mergers. Traditionally this type of demand analysis has been based on...

Critical loss analysis is often used to argue that firms with large margins have more to lose from a reduction in sales and hence are less likely to increase prices. This argument ignores the fact...