This paper estimates price-marginal cost mark-ups for Canadian manufacturing industries during the 1970s in order to assess the impact of import competition on domestic market power. The results are mixed. Based on the analysis, there is no consistent evidence that imports had a beneficial impact on competition in the Canadian market during that period. One possible explanation for this finding...

Many markets for homogeneous goods feature market power and heterogeneity in the prices paid by buyers. Search costs are a common explanation for this phenomenon and are a concern as they generate inefficiencies. In this paper, I study a competitive market for homogeneous goods and, by exploiting a unique dataset, I find three facts that are opposite to what one would expect from a market with ...

Banks in non-metropolitan areas compete in a spatially differentiated environment. Non-metro community banks have been insulated from increasing competition from metro banks due to their reliance on soft information in relationship lending. Proximity to borrowers, therefore, may be an important source of market power for non-metro community banks. This paper estimates a structural model of the ...

Perfect competition has long been the standard by which economists have judged the market’s ability to achieve an efficient social outcome. The competitive process, unfettered by the imperfections discussed below, forges an outcome in which goods and services are produced at their lowest possible cost, and market equilibrium is achieved at the point at which the cost of the last unit supplied j...

This paper is considering the competition between two multi-echelon supply-chains on price and service under balance and imbalance of market power between the chains which are analyzing through Nash and Stackelberg game approach. The problem is categorized as the centralized or decentralized structure of each chain, which means a few different possible scenarios are developing based on the Nash...

In this paper a model based analysis of competition in the German electricity market is presented. Applying a multi-regional two-stage model, which captures interregional transmission constraints and the impact of forward trading on spot market decisions, potential for exercising market power of the four dominant electricity producers has been found. Assuming Cournot behavior in the spot market...

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