Tacit Collusion in Price‐Setting Oligopoly: A Puzzle Redux

We study tacit collusion in price‐setting duopoly games with strategic complements and substitutes. While this problem has been considered by several studies, this article sheds new light on the comparison by focusing on the relationship between dynamic stability of equilibrium and tacit collusion. We find when controlling for the absolute slope of the reaction functions, there are no robust differences in either the convergence properties or tacit collusion between complements and substitutes treatments.     

The myth of large farm superiority: Lessons from agricultural transition in poland

In Poland, larger farms are often actively promoted over small farms. This policy is based on the perception that there are economies of scale that favor large farms; however, this is contrary to international evidence, which generally indicates that larger farms are less efficient and use less labor than smallscale family farms.

Using both total factor productivity measures and data envelopment analysis, empirical findings from Poland suggest that larger farms are no more efficient than smaller farms, and smaller farms are relatively more labor-intensive. These results have important policy implications for farm restructuring in Poland and other transition economies.     

Currency substitution and seignorage in eastern europe

Economic and political uncertainty, high inflation and liberalization of foreign exchange restrictions have encouraged substantial currency substitution in the economies in transition. This paper presents empirical evidence on currency substitution in four Eastern European countries in transition: Poland, Hungary, Romania and Bulgaria. It is shown how currency substitution affects money demand and by that seignorage revenues. The empirical estimates of the money demand functions are used to calculate the seignorage maximizing rate of inflation in the economies in transition.     

Experiential Learning in Economics

Real-life economic situations are simulated, and students are asked to perform decision-making roles. Economics is learned through “experience.”     

Self-service activities and formal or informal market services

Household can provide themselves with services in different ways. Generally a household can produce a service itself, or buy it on a formal or informal market. On an informal market services are sold at a price substantially lower than on a formal market, because of tax evasion by both consumer and producer. This article investigates the choices made by Dutch households with respect to three services: small home repairs, car repair and maintenance, and ladies' hairdressing. The analysis shows that the mode of provision of the services is influenced not only by financial considerations, but also by the ability of the household to engage in home production, skills for and attitudes towards home production and the availability of informal market services in the local area.     

On the Role of Outsiders in Technical Development

In this paper, it is argued that outsiders play an important role in the dynamics of technical change and that, for this reason, outsider involvement is also an important entry if one wants to 'improve' or democratize technical development. Outsiders are defined as people not involved in technical development and not sharing the rules that guide the design and development of a technology. The totality of these rules makes up the technological regime of a technology. Technological regimes are characterized by certain trajectories of technical development. The focus in this paper is on outsiders who may trigger (radical) technical change that transform current technological regimes. Three different types of such outsiders are distinguished and their role in technical development is discussed: professional scientists and engineers, outsider firms and societal pressure groups.