I put forward a new theoretical framework to analyze the relationship between soft budget constraint syndrome and the economic performances of firms. It differs from the existing theoretical framework, à la Dewatripont and Maskin (1995), in the soft budget constraint literature. In this paper, soft budget constraint syndrome arises when firms that are expected to lose money are financed. The pa...

Cooperative and mutual organisational forms arise for reasons that include contracting problems between parties. Economic literature suggests a variety of allocative inefficiencies implied by these forms that largely have their origins in poor investment decisions. We demonstrate that a multi-period model and the supplier and cooperative valuations it implies are essential for understanding the...

in many european states such as spain and italy there has been a significant growth of organic utilizable surface as a consequence of both a change in the model of agricultural production and also in order to satisfy arising demand of organic food. the purpose of this research was to investigate the level of technical, allocative and economic efficiency in italian olive farms with two different...

We report on an experiment investigating whether the Hayak Hypothesis (Smith, 1982) extends to the long run setting. We consider two environments; one with a common production technology having a U-shaped long run average cost curve and a single competitive equilibrium, and another with a common constant returns to scale technology having a constant long run average cost curve and multiple comp...

Previous research of complex-offer auctions designed for deregulated electricity markets finds that offer complexity allows great deal of strategic behavior, which consequently leads to anti-competitive and inefficient outcomes. In these smart markets that employ complex-offer auctions, the sellers submit not only quantities and minimum prices at which they are willing to sell, but also start-u...

We consider a model where a finite number of producers compete to meet an infinitely divisible but inelastic demand for a product. Each firm is characterized by a production cost that is convex in the output produced, and firms act as profit maximizers. We consider a uniform price market design that uses supply function bidding: firms declare the amount they would supply at any positive price, ...

The benefits of health information technology (HIT) are widely accepted. Nonetheless, how HIT becomes embedded and transforms health-care processes remain an understudied area in the literature. In this study we extend prior research by undertaking a more granular examination of HIT systems’ impact on how non-IT resources are allocated to healthcare tasks and routines. The context of our resear...

The Internet’s current numbering system is nearing exhaustion: Existing protocols allow only a finite set of computer numbers (“IP addresses”), and central authorities will soon deplete their supply. I evaluate a series of possible responses to this shortage: Sharing addresses impedes new Internet applications and does not seem to be scalable. A new numbering system (“IPv6”) offers greater capa...

Real market institutions, stock and commodity exchanges for example, do not occur in isolation. The same stocks and commodities may be listed on multiple exchanges, and traders who want to deal in those goods have a choice of markets in which to trade. While there has been extensive research into agentbased trading in individual markets, there is little work on this kind of multiple market scen...

We consider a model in which production of a downstream good requires access to an excludable upstream resource owned by a vertically integrated firm. The quality of the resource depends on an investment made by the owner and impacts the demand curve in the downstream market. Under open access, the owner must share the resource with downstream competitors at a regulated tariff, determined after...