This article focuses on testing the intuitive idea of Folk Theorem in a repeated game, and the existence of complementary bidding and incumbency premium. Through careful analysis of bidding behaviors in the Dallas-Ft. Worth (DFW) school-milk industry, I find that cooperation based on rationality and repetition satisfies the conditions for a kind of Folk Theorem. The data also strongly suggest t...

INTRODUCTION ................................................................................... 217 I. TEXT MESSAGE PRICING ......................................................... 218 A. History of Text Message Pricing ............................................ 218 B. Text Messaging Price Comparison ......................................... 220 II. TEXT MESSAGING MARKET BACKGROUND ...........

This paper contributes to the study of tacit collusion by analyzing infinitely repeated multiunit uniform price auctions in a symmetric oligopoly with capacity constrained firms. Under both the Market Clearing and Maximum Accepted Price rules of determining the uniform price, we show that when each firm sets a price-quantity pair specifying the firm’s minimum acceptable price and the maximum qu...

In the context of an infinitely repeated Prisoners’ Dilemma, we explore how cooperation is initiated when players signal and coordinate through their actions. There are two types of players patient and impatient and a player’s type is private information. An impatient type is incapable of cooperative play, while if both players are patient types and this is common knowledge then they can cooper...

I study the ability of competing retailers to form a cartel by sharing information with their mutual manufacturer. In a market characterized by demand uncertainty, colluding retailers wish to share information about the potential market demand in order to coordinate on the optimal collusive retail price. Since direct information sharing between the retailers is viewed by antitrust authorities a...

The arm’s length principle states that the transfer price between two associated enterprises should be the price that would be paid for similar goods in similar circumstances by unrelated parties dealing at arm’s length with each other. This paper examines the effect of the arm’s length principle on dynamic competition in imperfectly competitive markets. It is shown that the arm’s length princi...

The Federal Communications Commission (FCC) has used auctions to award spectrum since 1994. During this time period, the FCC has experimented with a variety of auctions rules including click box bidding and anonymous bidding. These rule changes make the actions of bidders less visible during the auction and also limit the set of bids that can be submitted during a particular round. Economic the...

In the context of an in…nitely repeated Prisoners’Dilemma, we explore how cooperation is initiated when players signal and coordinate through their actions. There are two types of players patient and impatient and a player’s type is private information. An impatient type is incapable of cooperative play, while if both players are patient types and this is common knowledge then they can cooperat...

In a framework where deregulating the electric power market is an objective to be achieved, this thesis investigates how the transmission rules chosen by the regulator to deregulate this market will shape the incentives given to the market players and influence their market power. To study this influence, it is challenging the perfect market assumptions and examining how physical and financial ...