ENTRY BARRIERS,COMPETITION, AND TECHNOLOGY ADOPTION

I build a model of technology adoption to study the quantitative effect of entry barriers on total factor productivity (TFP). In my model, incumbent firms choose technologies that are sufficiently productive to deter entry from a potential competitor. I show that higher entry barriers help to deter entry and lead to the choice of less productive technologies. A novelty of my work is that I use a direct measure of entry barriers. I find that reducing entry barriers from their average level in the poorest 30% of countries to their U.S. level leads to a sizeable increase in aggregate TFP of 12%. (JEL O11, O43)     

OPTIMAL PRICE OF ENTRY INTO A COMPETITION

A continuum of contestants are choosing whether to enter a competition. Each contestant has a type, and of those who enter, the ones with highest types receive prizes. A profit‐maximizing firm controls entry, and charges a price for it. I show that an increase in the value of each prize leads the firm to raise the price while keeping the intensity of entry fixed. Conversely, when the mass of prizes increases, the firm initially keeps the price constant while allowing entry to increase; and later—raises the price. (JEL C72, D82, D83)     

BARRIERS TO ENTRY IN THE MARKET FOR STUD SERVICES: GOVERNMENT AND "NON-PROFIT" INSTITUTIONS IN COLLUSION

Modern technologies are banned in the breeding of Thoroughbred horses. These practices have been banned by the states defining a Thoroughbred as a horse registered by the Jockey Club of New York, and by the Club refusing to register horses bred "unnaturally." Modern technologies would vastly increase the number of high quality foals and lead to a decline in industry prices and profits. The breeding restrictions protect the wealth of owners at the expense of consumers, potential input suppliers, and new breeders. Because of the distribution of costs and benefits in the political process, we foresee no end to legislatively mandated stagnation.     

ANTITRUST and COMPETITION, HISTORICALLY CONSIDERED

Although antitrust laws enjoy wide support among economists, there was almost no such support during the early years of the Sherman Act. One reason for this transformation is a change in the theory of competition. Until the 1920s most economists viewed competition as a dynamic, rivalrous process that would be stifled by antitrust laws. Once the perfect competition model–which largely ignores rivalry–was accepted, economists' opinions of antitrust grew more favorable. To the extent that antitrust interferes with rivalry and enterprise, the competitive model has very likely misdirected the profession, at least as far as antitrust policy is concerned.     

ACTIVE AGEING IN THE UK-ISSUES,BARRIERS, POLICY DIRECTIONS

Active ageing is defined as allowing people to remain independent and achieve their potential regardless of age. However, age is also a device used widely in society for assigning or taking away responsibilities, allocating resources or determining access to services on age grounds, or as a proxy for mental and physical well being. This paper is one of several prepared by the Active Age consortium funded by the European Union to undertake a review of the institutional framework in each participant country and how this shapes policies towards older people, including the barriers and opportunities affecting active ageing1 1. Austria, the Czech Republic, Finland, France, Germany, Italy, Norway, Poland, Switzerland and the UK. The aims are to identify policy goals, policy instruments, and institutional mechanisms of current active ageing policy agendas in each country. It considers not only public policies, but also includes some ageing initiatives from other sectors. View all notes. The expected outcome of this phase of research is a comprehensive overview of active ageing strategies in Europe, including barriers to active ageing, as well as a map of the socio-institutional and political landscape in which active ageing policies operate. This paper argues that the UK is quite well advanced in preparing and defining policies, but that some of the high public profile is as a result not of ageing as such, but issues arising in specific areas such as employment, education, pensions, health and health care.     

MIXED OLIGOPOLY, SEQUENTIAL ENTRY, AND SPATIAL PRICE DISCRIMINATION

This paper is the first to examine the welfare consequences of a public firm in a traditional model of spatial price discrimination. It demonstrates that when a private firm acts as a Stackelberg location leader, the presence of a public firm always improves welfare. Moreover, when three firms locate sequentially, the presence of a public firm improves social welfare unless it locates last. Thus, despite examining a variety of location timings, including simultaneous location, privatization never improves welfare and usually harms welfare. This conclusion differs from several currently in the literature in which privatization often improves welfare. ( JEL L13, L32, L33, L52)     

ENTRY AND EXIT,PRODUCT VARIETY,AND THE BUSINESS CYCLE

We study the stochastic behavior of a dynamic general equilibrium model with monopolistic competition. Each seller sells his product in the consumption goods as well as the investment goods market and has market power in both. Consumers derive utility from a constant elasticity of substitution (CES) aggregate of all the consumption goods and augment their capital stock by a CES aggregate of all the investment goods. We analyze the equilibrium of this economy allowing for an endogenous determination of the number of firms and therefore of products. The principal effect we wish to highlight is the endogenous propagation and magnification of technology and preference disturbances through product space variations. (JEL E32, D43, L16)     

UNIVERSITY COMPETITION,GRADING STANDARDS,AND GRADE INFLATION

We develop a model of strategic grade determination by universities distinguished by their distributions of student academic abilities. Universities choose grading standards to maximize the total wages of graduates, taking into account how the grading standards affect firms' productivity assessment and job placement. We identify conditions under which better universities set lower grading standards, exploiting the fact that firms cannot distinguish between “good” and “bad”“A’'s. In contrast, a social planner sets stricter standards at better universities. We show how increases in skilled jobs drive grade inflation, and determine when grading standards fall faster at better schools. (JEL I21)     

THE IMPACT OF TRADE COSTS ON FIRM ENTRY,EXPORTING, AND SURVIVAL IN KOREA

This study examines how changes in trade costs have affected entry, exit, productivity, and exporting in the Korean manufacturing sector. We verify several predictions of heterogeneous‐firm models of international trade. For example, falling import‐trade costs are associated with less entry and lower market shares among existing domestic firms, and higher total factor productivity for Korean manufacturing as a whole. The size of firms plays an important role in many of our results. New domestic firms are more likely to be small, but large firms are less likely to exit and more likely to have an increase in total factor productivity. (JEL F10, D24)     

PERFECT COMPETITION, URBANIZATION, AND TAX INCIDENCE IN THE RETAIL GASOLINE MARKET

We use monthly gasoline price data for all 50 U.S. states over the period 1984–1999 to examine the incidence of state gasoline excise taxes. Our estimation results indicate full shifting of gasoline taxes to the final consumer. In addition, although we find that gasoline retail prices demonstrate asymmetric responses to changes in gasoline wholesale prices , we find only limited evidence of such behavior for retail prices with respect to gasoline excise taxes. Finally, we find that gasoline markets in urban states exhibit full shifting, but those in rural states (with less competition) demonstrate somewhat less than full shifting . ( JEL H22)     

CHILDHOOD FAMILY STRUCTURE AND ENTRY INTO FIRST MARRIAGE

The present study uses data from the National Survey of Families and Households to examine socialization and stress hypotheses which link family structure during childhood with entry into first marriage. Results from logistic regressions show evidence for both hypotheses. The findings show that years lived with mother only during early childhood and change from both biological parents to mother-only families significantly increase chances for delayed marriage for whites. One other factor, being born into a mother-only family, increased chances for early marriage. Thus, for whites, we found counteracting influences of family structure during childhood on marriage. For blacks, the family structure measures, overall, show little effect on entry into marriage. Finally, we found that family structure had a stronger impact for those born in the 1940s than for those born later.     

SPATIAL COMPETITION AND STRATEGIC FIRM RELOCATION

Firms compete spatially for customers who have some degree of brand loyalty. The number and attractiveness of the alternatives available to these customers dictates the level of competition facing firms. In this study, data on ticket pricing in four professional sports leagues are used to empirically examine the existence of spatial competition in sports, and the impact of space on team relocations. Results, allowing for structural breaks over time while using spatial autoregressive techniques, suggest that sports franchises spatially compete when pricing their tickets, and that spatial characteristics, including the level of spatial competition, have influenced the relocation of teams. (JEL D40, L11, R30, L83)     

USING GENDER: THE PERSONAL,INTERPERSONAL, AND EMOTIONAL STRATEGIES OF DOMESTIC LABOR

Traditional research on domestic labor has conceptualized work done in support of the home as one of the quintessential ways of “doing” gender. New directions in gender and ritual theory raise the possibility that domestic labor may also be about strategy, usefulness and intentions. Through interviews with 24 married couples, I explore the subjective experiences of men and women as they “do” their domestic labor. I find that while husbands and wives are continuing to do gender as a response to interactional accountability demands, they also “use” domestic labor as a vehicle through which they (1) reciprocally craft their gender identity, (2) symbolically communicate with their spouse, and (3) garner emotional energy. Furthermore, the men and women strategically mobilized specific tasks that are most useful in achieving these goals inside their unique dyadic schemas. Through these narratives, I explore the possibility that men and women not only do gender but they can use gender as well.     

IMPERFECT COMPETITION and BUSINESS CYCLES: AN EMPIRICAL INVESTIGATION

Does imperfect competition increase the magnitude of business cycles? If so, the variability of an industry's employment and output should be positively related to the market power of firms in that industry. This paper demonstrates that the opposite is true: U.S. manufacturing industries with high price-cost margins display less employment variability than do low-markup industries. These high-markup industries display less price variability as well. Highly concentrated industries, however, do display more employment variability. To some degree, markups may reflect labor hoarding rather than market power; this may account for part, but not all, of the negative correlation between markups and variability.     

IMPACT OF COMPETITION,INVESTMENT, AND REGULATION ON PRICES OF MOBILE SERVICES: EVIDENCE FROM FRANCE

In this paper, we assess the impact of competition, investment, and regulation on prices of mobile services in France. We estimate hedonic price regressions using data on tariff plans offered by the main mobile telecommunications operator in France between May 2011 and December 2014. In this time period, the obtained quality‐adjusted price index decreased by about 42.8% as compared to a decline in weighted average prices without quality‐adjustment of 8.7%. In a second step, we relate the quality‐adjusted prices to a set of competition, investment, and regulation variables and find that the launch of 4G networks by mobile operators was the main driver of price reductions for classic tariffs with commitment. Low‐cost tariffs without commitment which were introduced to pre‐empt the entry of low‐cost competitor declined at the time of entry. Moreover, we find that regulation, which is approximated by the level of mobile termination charges and international roaming price caps for voice and data, has a joint significant impact on quality‐adjusted prices. In percentage terms, competition is responsible for about 23.4% of total price decline and investments in 4G for 56.1%. We conclude that the reduction in quality‐adjusted prices in the last years was largely caused by competition between operators for a new 4G technology and by entry of a fourth low‐cost operator. (JEL L13, L50, L96)