We develop a simple competitive model of the marriage market in which bridal families decide how much to transfer to their daughter and how much to transfer to a potential groom. By allocating property rights over total marital transfers in this way, the bridal family influences the outcome of intra-household bargaining. This approach formalizes and clarifies the dual roles of dowry as both as ...

In this paper, we investigate the optimal choice of transfer pricing regulations from a normative point of view. In this context we put special emphasis on the treatment of business relocations. Two inefficiencies may arise: First, firms may structure a transaction as multinational enterprise (MNE) for tax reasons even though it would be welfare enhancing to carry out the transaction between un...

This paper discusses the influence of time inconsistency problem on technology-leading firms' choice between in-house production and technology transfer. Because of incredibility of innovator's commitment of not exporting after licensing, she may not be able to extract rent from licensing as much as when she could commit credibly. Facing this distortion, she chooses in-house production when the...

The price dispersion means different prices for same goods. In the Internet economy, many economists reckon that the price dispersion in the e-commerce markets should descend along with the dropping of search cost. However, the correlative empirical studies reach a contrary opinion: there not only exist price dispersion in the e-commerce market, but also has larger dispersion degree than the tr...

Quality-Adjusted Life Years (QALYs) are the most widely-used measure of health in cost– effectiveness analysis and cost–benefit analysis. Within a welfarist framework QALYs are consistent with people’s preferences under stringent assumptions. Several authors have argued that QALYs are a valid measure of health within an extra-welfarist framework. This paper studies the applicability of QALYs wi...

Tradable permits are celebrated as a political instrument since they allow (i) firms to equalize marginal abatement costs through trade and (ii) the government to distribute the burden of the policy in a politically fair and feasible way. These two concerns, however, conflict in a dynamic setting. Anticipating that high-cost firms will receive more permits in the future, firms purchase excessiv...

This paper attempts to reconcile an apparent contradiction between short-run and long-run movements in the price of gold. A theoretical model is developed that suggests a set of the conditions that would have to be satisfied for the price of gold to rise over time at the general rate of inflation and hence be an effective long-run hedge against inflation. The model also demonstrates that short-...

This paper examines whether consumers necessarily benefit from tightening the price cap. We find that a tighter price cap always increases consumer welfare when demands are independent. Conversely, when demands are interdependent a tighter price cap may reduce consumer welfare.  2000 Elsevier Science S.A. All rights reserved.

The paper aims to highlight the importance of transfer pricing in the international economic environment, a topical subject, with a strong impact both on the affiliated companies and on the countries in which these companies operate. It is important to emphasize that, at present, the transfer price is an important element in the activity of companies around the world, considering the changing b...