Determining market power exertion between buyers and sellers

Empirical techniques commonly used in industrial organization to measure market power exertion typically assume imperfectly competitive behaviour by firms on only one side of the market. Firms on the other side are assumed to be perfectly competitive. In this paper we extend traditional NEIO methods by developing a method to estimate market power exertion when firms on both sides have potential market power. Using Monte Carlo simulations, we find that the model correctly estimates market power exercised by firms on either or both sides of a market and also correctly estimates firms' technology parameters. When applied to the US leaf tobacco market, findings indicate that cigarette manufacturers exert some monopsony power in purchasing leaf tobacco while producers, organized as a cartel, exhibit no countervailing monopoly market power. Copyright © 2000 John Wiley & Sons, Ltd.     

Managing knowledge in foreign entry strategies: a resource‐based analysis

International strategies vary in their potential to exploit and augment a firm's resources, especially its knowledge base. Resource‐based analysis suggests clustering the diverse entry modes in terms of their exploitation and augmentation characteristics. We thus introduce a new categorization of entry modes based on their potential to augment the resources of an entrant. We then explore the antecedents of these modes, and advance testable propositions delimiting for which firms and in which circumstances each mode maximizes long‐term value creation. Finally, we outline how our resource‐based framework complements transaction‐cost‐based frameworks. Copyright © 2009 John Wiley & Sons, Ltd.     

Schuldenerleichterungen für Griechenland — ein Überblick

The article provides an overview of debt waivers by private and public debt holders during the Greek financial crisis and the three assistance programmes. Greece’s advantages add up to around 280 to 298 billion euros. The burden, in the form of reduced annual payments, is carried by the debt-holding countries and amounts to about 206 to 224 billion euros, the private sector’s share being roughly 70 %. Nevertheless, liability shifted from the private sector to rescue funds. Therefore, the aforementioned additional debt relief will primarily strain the countries that pay for the bail out and the ECB.     

The Determinants of Plant Exit: the Evolution of the U.S. Refining Industry

This paper analyzes the exit and expansion of U.S. petroleum refineries using plant-level data from 1947 to 2013. We find that small refineries and refineries owned by a multi-plant firm are more likely to close. If a multi-plant firm closes a refinery, it closes a smaller one. Unlike previous research, we find no clear relationship between a firm’s share of national refining capacity and the probability of refinery exit. We also find that refineries close when the industry as a whole has low capacity utilization. In total, firms close small, likely inefficient, refineries when refinery utilization is low.     

DOES ATHLETIC SUCCESS INFLUENCE PERSISTENCE AT HIGHER EDUCATION INSTITUTIONS? NEW EVIDENCE USING PANEL DATA

This study examines the relationship between athletic success and student persistence toward a degree. We build an updated panel of National Collegiate Athletic Association (NCAA) Division I institutions and utilize within‐institution variation to identify the effects of athletic success. Using a ranking of all institutions, we find that having more successful men's basketball and football teams has a significant positive effect on first‐year retention rates. We also find some evidence that improved basketball rankings increase graduation rates, and that success in the NCAA tournament may have a sizable impact on retention. Although the estimated effects are generally modest in scale, we find rather limited evidence of other institutional factors affecting persistence, suggesting that athletics can be one avenue for institutions of higher education to engage and retain students. (JEL I23, Z20, L83)     

The Impact of Institutional and Human Resource Distance on International Entry Strategies

'Distance' between organizational contexts has been a prime concern of scholarly research into international business strategies. We extend this research by exploring the complementary roles of institutional and human resource distances on foreign investors' entry strategies. Combining institutional and resource-based theories suggests that: (1) human resource differences complement institutional differences; (2) the effects of some aspects of distance are curvilinear; and (3) the impact of distance differs between first and subsequent entries. We find empirical support for these arguments on a unique dataset of foreign direct investment in six emerging economies that incorporates multiple host as well as multiple home countries.