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RAND Journal of Economics

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A retail benchmarking approach to efficient two-way access pricing: no termination-based price discrimination.
We study access pricing rules that determine the access prices between two networks as a linear function of marginal costs and (average) retail prices set by both networks. When firms compete . . .

An optimal auction with identity-dependent externalities.
We analyze the problem of a seller of multiple identical units of a good who faces a set of buyers with unit demands, private information, and identity-dependent externalities. We derive the . . .

What changes energy consumption? Prices and public pressures.
Policymakers often seek to limit energy prices following market shocks, and instead issue public appeals to reduce demand. This article presents new evidence on how price changes and conservation . . .

Work-related perks, agency problems, and optimal incentive contracts.
Work-related perks, such as corporate jets, nice offices, and so forth, improve the tradeoff between incentives and insurance that determines the optimal incentive contract. We show that (i) such . . .

Sustaining implicit contracts when agents have career concerns: the role of information disclosure.
Firms often augment career concerns incentives with implicit incentive contracts. I formalize the interaction between these two incentives, and highlight its implications on a firm's decision . . .

Takeovers, market monitoring, and international corporate governance.
We theoretically and empirically examine the role of international takeover markets in curtailing dominant shareholder moral hazard for firms with higher value-added from acquisitions. In . . .

Differentiated networks: equilibrium and efficiency.
We consider a model of price competition in a duopoly with product differentiation and network effects. In the efficient allocation, both networks are active and the firm with the highest expected . . .

Delegation and incentives.
This article analyzes the relation between authority and incentives. It extends the standard principal-agent model by a project selection stage in which the principal can either delegate the choice . . .

Short-term fluctuations in hospital demand: implications for admission, discharge, and discriminatory behavior.
We analyze admission and discharge decisions when hospitals become capacity constrained on high-demand days, and develop a test for discrimination that, under certain circumstances, does not . . .

Information feedback in first price auctions.
I apply the notion of a self-confirming equilibrium (SCE) to study how feedback in first price auctions influences bidders' perceptions about their strategic environment, and consequently . . .

Domestic airline alliances and consumer welfare.
This article investigates the consumer welfare consequences of the recent code-share agreement between Continental Airlines and Northwest Airlines. We develop a discrete choice model based on . . .

Buy-out prices in auctions: seller competition and multi-unit demands.
Online auction sites often enable sellers to add a buy-out price. In one-shot auctions, this has been motivated by appeal to impatience or risk aversion. We offer additional justification in a . . .

Illinois Walls: how barring indirect purchaser suits facilitates collusion.(Hanover Shoe Inc. v. United Shoe Machinery Corp.)(Il
In its landmark ruling in Illinois Brick Co. v. Illinois in 1977, the US. Supreme Court restricted standing to sue for recovery of antitrust damages to direct purchasers. However, antitrust damages . . .

Laboratory evidence on the effectiveness of corporate leniency programs.
The number of cartels detected in the United States and in Europe has increased considerably since the introduction of corporate leniency programs in antitrust legislation. It cannot, however, be . . .

Durable goods and residential demand for energy and water: evidence from a field trial.
This article describes a household production model in which energy-efficient durable goods cost less to operate so households may use them more. The model is estimated using household-level data . . .

RAND journal of economics turnaround times.(Statistical table)
RAND Journal of Economics Turnaround Times First Decision (%) Month 0-3 4-6 7-9 Submitted Months Months Months July 2003 . . .

Do report cards tell consumers anything they don't already know? The case of Medicare HMOs.(Health Maintenance Organizations)
Estimated responses to report cards may reflect learning, about quality that would have occurred in their absence ("market-based learning,"). Using, panel data on Medicare HMOs, we examine . . .

Quantifying the benefits of entry into local phone service.(Company overview)
Local telecommunications competition was an important goal of the 1996 Telecommunications Act. We evaluate the consumer welfare effects of entry into residential local telephone service in New York . . .

Academic freedom, private-sector focus, and the process of innovation.
We develop a model that clarifies the respective advantages and disadvantages of academic and private-sector research. Rather than relying on lack of appropriability or spillovers to generate a . . .

Search with learning: understanding asymmetric price adjustments.
In many retail markets, prices rise faster than they fall. We develop a model of search with learning to explain this phenomenon of asymmetric price adjustments. By extending our static game . . .

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