Economic Inquiry

Articles from Vol. 51, No. 2, April

A Laboratory Study of Auctions with a Buy Price
I. INTRODUCTION The rapid growth in the use of auction markets on the Internet has led to a number of innovations in auction design. One of these innovations is the development of the buy price. A buy price allows the seller, during the listing...
A Laboratory Study of Duopoly Price Competition with Patient Buyers
I. INTRODUCTION Two extreme forms of pricing behavior--sometimes called the Bertrand Paradox and the Diamond Paradox--emerge from a single distinguishing assumption. Bertrand (1883) assumes that a buyer knows ex ante the prices of all sellers, and...
Arbitrage across Borders: Why iTunes Gift Cards Sell above Face Value on eBay
I. INTRODUCTION Firms that operate internationally often charge different prices for the same product in different countries. These price differences may be due to cost differences, exchange rate fluctuations, and/or price discrimination, where...
Brain Drain in Globalization: A General Equilibrium Analysis from the Sending Countries' Perspective
I. INTRODUCTION Is brain drain a curse or a boon for the sending countries? The economic literature has put forward several positive and negative effects of high-skilled emigration, but little is known on the relative magnitudes of these different...
Carbon Geography: The Political Economy of Congressional Support for Legislation Intended to Mitigate Greenhouse Gas Production
I. INTRODUCTION The U.S. Congress has recently voted on several pieces of legislation with the direct intent of reducing greenhouse gas emissions. The June 2009 vote on the American Clean Energy and Security Act (ACES) is the most well known. This...
Common-Pool Resources with Free Mobility
I. INTRODUCTION To date, most of the experimental research on common-pool resources (CPR) has been concerned with the overexploitation problem within one community. Several studies as in Casari and Plott (2003), Visser (2006), and Fehr and Gachter...
Current Account Adjustment in Developing Countries: The Role of Exchange Rate Regimes
I. INTRODUCTION An important question in open economy macroeconomics is whether exchange rate rigidity hinders current account adjustment (also known as the Friedman hypothesis). According to Friedman (1953), a flexible exchange rate regime facilitates...
Demand for Differentiated Durable Products: The Case of the U.S. Computer Printer Market
I. INTRODUCTION This paper aims to provide a theoretical and empirical description of consumer behavior in a dynamic market for differentiated durable goods. The computer hardware industry serves as an example of the type of market we consider....
Do Real Estate Brokers Add Value When Listing Services Are Unbundled?
I. INTRODUCTION Real estate brokers typically provide sellers with bundles of services, most of which are ostensibly aimed at improving the terms at which homes are sold and helping homeowners find buyers more quickly. (1) Traditionally, access...
International R&D Spillovers and Productivity Trends in the Asian Miracle Economies
I. INTRODUCTION Recent developments in endogenous growth theories have led to an increased recognition of the role that domestic knowledge and international knowledge spillovers (IKS) play as the engines of growth in Organisation for Economic Co-operation...
Loss Aversion and Managerial Decisions: Evidence from Major League Baseball
I. INTRODUCTION AND MOTIVATION Previous research indicates that management changes are important events for organizations, partly because they lead to reversals of poor prior decisions, (1) However, this research begs the question of why it may...
Optimal Copyright Length and Ex Post Investment: A Mickey Mouse Approach
I. INTRODUCTION Conventional economic reasoning regarding copyright length is based on the interaction between two opposing economic forces. On the one hand, an increase in copyright duration promotes innovation by increasing the incentives to create,...
The Impact of Mergers on Fares Structure: Evidence from European Low-Cost Airlines
I. INTRODUCTION In Europe, the rapid growth of low-cost airlines (LCAs) has been made possible by the civil aviation industry being fully liberalized in 1997, allowing any airline registered in any European Union (EU) member state to serve any city-pair...
The Matching of Heterogeneous Firms and Politicians
I. INTRODUCTION The role of political capital in firm performance has attracted significant attention in recent economic research. Many studies show that political connections help firms secure favorable regulatory conditions, gain access to resources,...