We examine how market structure and enforcement affect smuggling and welfare in a model where smuggling is camouflaged by legal sales. Conditions are given for when some, but not necessarily all, firms smuggle. With camouflaging, t e market price is below the price when all sales are legal, so smuggling improves wel if the price effect outweighs excess smuggling cost. This welfare effect is dir...

In telecommunications industries access charge problems are important issues during deregulation. In Japan and the US, deregulation also involves the issue of industrial structures as integration or divestiture of a long-distance sector. This paper analyzes access charge problems by introducing effects of the divestiture on cost functions. We show how the effects influence economic welfare unde...

This paper analyses market structure of industries that are subject to both positive and negative network effects. The size of a firm determines the quality of its product: when network effects are positive, a larger firm is of higher quality; when the effects are negative, a larger firm’s product is of lower quality. Consumers have heterogenous preferences towards quality (firm size), and firm...

We are a group of scientists and business people who share a common interest in the application to financial systems of a scientific methodology called agent-based modeling (ABM). We believe this methodology represents a scientifically validated and powerful tool to facilitate the Commission’s regulation of equity markets. We believe that its use would enable the Commission to make scientifical...

This paper studies ...rms’ incentives to invest in environmental R&D under different market structures (Cournot and Bertrand) and environmental policy instruments (emission standards, taxes, tradeable permits and auctioned permits). Because of market strategic e¤ects, R&D incentives vary widely across market structures and instruments. For example, when ...rms’ products are strategic substitute...