In this paper we use a general model of imperfect competition to predict welfare changes within an open-access fishery after it transitions to individual transferable quota (¡TQ) management. Although related research has explored the effects of market power in the harvesting sector on ÍTQ performance, none has considered the implications of an imperfectly competitive processing sector. Addressi...

This paper estimates a dynamic oligopoly model to assess economic consequence of a horizontal merger, which took place in 1970 to create the second-largest steel producer in the world. The paper solves for a Markov perfect Nash equilibrium of the model and simulates welfare e¤ects of the horizontal merger. Estimates reveal that the merger enhanced production e¢ ciency for the merging party by t...

This paper presents an empirical assessment of the degree of competition within the Jamaican banking sector during the period 1998 to 2007. The popular H-statistic by Panzar and Rosse is utilised to estimate market power among the sample of banks. Using usual statistical tests, we are unable to reject monopoly/perfect collusion for the banking market in Jamaica. This contrasts with earlier find...

Market power and adverse selection are prevalent features of the market for pre-paid health plans. However, most of the literature on adverse selection considers extreme cases: either perfect competition or monopoly. If instead health plans are horizontally differentiated, then (i) profits derived from each low risk are higher than from each high risk and (ii) when the profits derived from each...

As a matter of course, power market uncertainties escalation is by product of power industry restructure on one hand and the unrivalled penetration of renewable energies on the other. Generally, the decision making process in such an uncertain environment faces with different risks. In addition, the performance of real power markets is very close to oligopoly markets, in which, some market play...

This paper addresses the claim that monopolies arise naturally out of the free market. I show by comparing and contrasting two theories of monopoly—economic and political monopoly—that this is not true. This paper also demonstrates that the two theories of monopoly have their separate roots in two opposite theories of competition: perfect competition and competition as rivalry. I show that only...

Instituto de Investigación Tecnológica (IIT) Universidad Pontificia Comillas-Madrid Abstract In power systems models, there are some variables of discrete nature, such as those modeling the state of the power units, started up or stopped. As a result, the marginal cost of operation is, in general, insufficient to pay the costs associated with these variables (eg, start up cost). Therefore, even...

The main objective of this paper is to evaluate the structure of the Iranian banking system and to measure the market power factor based on the Boone approach. In this paper, we investigated the Iranian organized money market, including 18 banks operating in the period of 2008-2015. To calculate the marginal cost (MC), we used a Translog Stochastic Frontier Cost Function. Findings based on the ...

In network-constrained electricity market models of oligopolistic competition among power producers, strategically behaving generators are likely to manipulate prices in the energy and transmission market in order to gain higher profits. As for the energy market, several game theoretical approaches have been applied to represent strategic generators’ behavior. Another approach is used in this p...

The existence of positive epidemiological externalities from vaccination are widely accepted and motivate a variety of public policies, but we lack a sense of what affects the relative magnitude of these externalities across diseases. We analyze vaccine externalities in an integrated economic and epidemiological model in which producers have market power. A result of our model is that the margi...