Free Entry in a Cournot Market with Overlapping Ownership

By Xavier Vives and Orestis Vravosinos

American Economic Journal: Microeconomics, May 2025

We examine the effects of overlapping ownership among existing firms deciding whether to enter a product market. We show that in most cases—and especially when overlapping ownership is already widespread—an increase in the extent of overlapping owners...

Information Acquisition and Product Differentiation Perception

By Gary Biglaiser, Jiadong Gu, and Fei Li

American Economic Journal: Microeconomics, August 2025

We consider the equilibrium interplay between sellers' price competition and consumers' perception of product differentiation. We analyze a situation where, before trading, consumers acquire information at a cost about their preferences between sellers' d...

Church Tax Exemption and Structure of Religious Markets: A Dynamic Structural Analysis

By Raphael Corbi and Fabio Miessi Sanches

American Economic Journal: Microeconomics, August 2025

We study the effects of church tax exemptions on the structure of religious markets. Using the Brazilian experience as a showcase, we develop and estimate a dynamic entry model of religious organizations based on temple opening and closure in geographical...

On the Alignment of Consumer Surplus and Total Surplus under Competitive Price Discrimination

By Dirk Bergemann, Benjamin Brooks, and Stephen Morris

American Economic Journal: Microeconomics, November 2025

We study the role of information in Bertrand competition with differentiated goods and heterogeneous production costs. When producers know their costs and consumers know their values, consumer surplus and total surplus are aligned, in the sense that the i...

Nonlinear Pricing and Misallocation

By Gideon Bornstein and Alessandra Peter

American Economic Review, November 2025

This paper studies the effect of nonlinear pricing on markups and misallocation. In a general equilibrium model in which firms are allowed to set a quantity-dependent pricing schedule, markup heterogeneity is not a sign of misallocation. Instead, we point...

Imperfect Competition in Financial Markets: Recent Developments

By Marzena Rostek and Ji Hee Yoon

Journal of Economic Literature, December 2025

This article reviews the theory of imperfectly competitive financial markets, with special attention to recent contributions and rapidly growing areas of research. We highlight the methodological advances that have led to a unified analytic framework for ...

Multiproduct Quality Competition: Fighting Brands and Product Line Pruning

By Justin P. Johnson and David P. Myatt

American Economic Review, June 2003

Firms selling multiple quality-differentiated products frequently alter their product lines when a competitor enters the market. We present a model of multiproduct monopoly and duopoly using a general "upgrades" approach that yields a powerful analytical ...

Kin Groups and Reciprocity: A Model of Credit Transactions in Ghana

By Eliana La Ferrara

American Economic Review, December 2003

This paper studies kinship band networks as capital market institutions. Membership in a community where individuals are dynastically linked has two effects on informal credit. First, the nonanonymity of the dynastic link allows to sanction the defaulters...

Social Capital and Contributions in a Public-Goods Experiment

By Lisa R. Anderson, Jennifer M. Mellor, and Jeffrey Milyo

American Economic Review, May 2004

Opportunism in Multilateral Vertical Contracting: Nondiscrimination, Exclusivity, and Uniformity: Comment

By Leslie M. Marx and Greg Shaffer

American Economic Review, June 2004

Opportunism in Multilateral Vertical Contracting: Nondiscrimination, Exclusivity, and Uniformity: Reply

By R. Preston McAfee and Marius Schwartz

American Economic Review, June 2004

Herd Behavior in a Laboratory Financial Market

By Marco Cipriani and Antonio Guarino

American Economic Review, December 2005

We study herd behavior in a laboratory financial market. Subjects receive private information on the fundamental value of an asset and trade it in sequence with a market maker. The market maker updates the asset price according to the history of trades. T...

Were There Regime Switches in U.S. Monetary Policy?

By Christopher A. Sims and Tao Zha

American Economic Review, March 2006

A multivariate regime-switching model for monetary policy is confronted with U.S. data. The best fit allows time variation in disturbance variances only. With coefficients allowed to change, the best fit is with change only in the monetary policy rule and...

Equilibrium Incentives in Oligopoly: Corrigendum

By Chaim Fershtman and Kenneth L. Judd

American Economic Review, September 2006

Market Share Dynamics and the "Persistence of Leadership" Debate

By John Sutton

American Economic Review, March 2007

A new 45-industry, 23-year, dataset for Japan is used to investigate the duration of industry leadership. A new scaling relationship linking a firm's current market share with the standard deviation of market share changes is reported. This relationshi...

The Impact of New Drugs on US Longevity and Medical Expenditure, 1990–2003: Evidence from Longitudinal, Disease-Level Data

By Frank R. Lichtenberg

American Economic Review, May 2007

Do Vertical Mergers Facilitate Upstream Collusion?

By Volker Nocke and Lucy White

American Economic Review, September 2007

We investigate the impact of vertical mergers on upstream firms' ability to collude when selling to downstream firms in a repeated game. We show that vertical mergers give rise to an outlets effect: the deviation profits of cheating unintegrated firms ...

Impossibility of Collusion under Imperfect Monitoring with Flexible Production

By Yuliy Sannikov and Andrzej Skrzypacz

American Economic Review, December 2007

We show that it is impossible to achieve collusion in a duopoly when (a) goods are homogenous and firms compete in quantities; (b) new, noisy information arrives continuously, without sudden events; and (c) firms are able to respond to new information ...

The Subjectivist Response

By Dale J. Poirier

Journal of Economic Perspectives, Winter 1988

[This paper responds to comments on "Frequentist and Subjectivist Perspectives on the Problems of Model Building in Economics," by Dale J. Poirier.] It is a rare opportunity to have one's research discussed in print by as eminent and contemplative a group...

The High Cost of Incompletely Funding the FSLIC Shortage of Explicit Capital

[Symposium: Federal Deposit Insurance]

By Edward J. Kane

Journal of Economic Perspectives, Fall 1989

A useful parallel can be drawn between the Alaskan oil spill of 1989 and the flood of red ink spilled in recent years by U.S. thrift institutions (savings and loan associations and savings banks). In each case, initial damage from the spill was severely c...