Merger Control in a Changing World

Hedging Trade-Cost Uncertainty

This paper studies how international firms hedge against trade-cost uncertainty. We analyze two margins of adjustment: foreign market entry (exporting versus foreign investment) and invoicing in free-on-board (FOB) or cost-insurance-freight-inclusive (CIF) prices. Under oligopolistic competition and price rigidity, tra...

Journal of International Economics

Partial Cross-ownership and Merger Control in International Trade

Leaving the global playing field through optimal non-discriminatory corporate taxes and subsidies

DEPARTMENT OF ECONOMICS WORKING PAPER 2006

Equilibrium in a Failed Cartel: Set-Valued Reactions and Sources of Market Asymmetry

We study a three-firm market following the breakdown of an initially complete cartel, taking both the breakdown and the identity of the departing firm as exogenously given. In the baseline model, the former cartel members no longer coordinate: all three firms choose quantities simultaneously and non-cooperatively. Thus...