A stable market structure is a partition of the firms in an industry such that there is no incentive for any breakups or mergers. Characterizing such stability requires an endogenization of both the core and Cournot equilibrium as well as all hybrid equilibria. This paper solves for the stable partitions in a general oligopoly by providing a tractable condition: a partition is stable if and onl...

Wage Gaps Large and Small The law of one wage does not strictly hold, nor should it be expected to hold, in contemporary labor markets. The law of one wage, however, provides a surprisingly good first approximation of the structure of U.S. wages. This generalization is drawn from research on a diverse set of topics: the Mincerian wage equation and earnings imputation, union wage differentials, ...

We consider a regulator who does not know how many firms should be granted a license to enter a market as he has limited information on their setup costs. We propose two auction formats which implement the efficient market structure. One is called ”jumping English auction”, where the price for a license increases continuously most of the times, but jumps at pre-specified points. The other is ca...

Empirical evidence suggests that the voting premium in the Korean securities market is strongly related to the structure of corporate ownership. We find that the premium attached to voting stock is positively and significantly associated with the control value of a block of shares held by minority shareholders. We also find that the premium is negatively related to both the fraction of shares t...

Using a calibrated OLG model with several sources of uncertainty we find that the impact of ageing and of reform of social security upon the demand for housing and the level of owner occupation is substantial. The overall structure of household asset holdings in particular the split between real and financial assets is sensitive to demographics and to the generosity of state run, pay-as-yougo p...

I study the implications of exclusive contracts for smartphones. Theory models indicate that lower demand elasticities for handsets relative to wireless networks could lead to exclusive contracts maximizing joint profits of the contracting parties. I estimate smartphone and carrier demand on a detailed monthly market-level dataset of US consumer decisions over 2008-2010. Counterfactual simulati...

The relation between physical probabilities (rating) and risk-neutral probabilities (pricing) is derived in a large market with a quasi-factor structure. Factor sensitivities and default probabilities can be estimated for all kinds of credits on historical rating data. Since factor prices are obtainable from market data, the model allows the pricing of non-marketable credits and structured prod...

The Journal of Economic Literature codes classification system (JEL) published by the American Association (AEA) is de facto standard for research literature in economics. JEL used to classify articles, dissertations, books, book reviews, and working papers EconLit, a database maintained AEA. Over time, it has evolved extended with over 850 subclasses. This paper reviews history development sys...

Flexible firms compete by means of wages in the Assignment market while rigid firms have no flexibility over terms of appointment in the Marriage market. Workers trade with both kinds of firms in the hybrid market. Examples show that standard results that characterize the core of the Marriage market (respectively, Assignment market) are not robust to the entrance of flexible (respectively, rigi...