Do oligopolistic firms benefit from being forced to act non-strategically?

The present study seeks to answer the question of whether acting non-strategically can benefit firms. In a static Cournot framework, if a subset of firms are constrained to the equilibrium level of output, being non-strategic will have no impact on profits of neither constrained nor strategic firms and provided that sufficiently large number of firms are restricted, a marginal quantity contraction can be to their benefit. In contrast, using a dynamic Cournot framework, we find that the constraint set at the equilibrium level or moderately deviated from it, leads to increased profits for all firms irrespective of the number of non-strategic ones.     

Spillover analysis across FinTech,ESG, and renewable energy indices before and during the Russia–Ukraine war: International evidence

This study is epicentral to analyze the impact of the Russia–Ukraine war on the financial markets, specifically focusing on the connectedness and spillover dynamics of FinTech, Environmental, Social, and Governance (ESG), renewable energy, gold, and Morgan Stanley Capital International (MSCI) indices in developed and emerging countries. Data are collected from Thomson Reuters, ranging from May 8, 2020, to May 11, 2022, and a time-varying parameter vector autoregression (TVP-VAR) and the dynamic conditional correlation (DCC) generalized autoregressive conditional heteroskedasticity (GARCH) t-Copula (DCC-GARCH t-Copula) are used to analyze the data. The results show that FinTech, ESG, and MSCI are net transmitters in developed countries, whereas gold and renewable energy are net receivers pre- and during war periods. ESG and MSCI are net transmitters in emerging countries, while FinTech, renewable energy, and gold become net receivers in both periods. The hedging ratio sheds light on the costs and weights of efficient pair investments that might change in the context of each region and under the combined scenario. The study has important implications for merchant bankers, policymakers, investors, hedgers, and risk managers.     

COLLECTIVELY GARDENING THE URBAN PUBLIC SPACE IN MEXICO CITY: When Informal Practices Interact with the State

In recent years, a growing number of citizen-led gardens have appeared in the urban public spaces of large cities across the world. While many of these projects are initially launched informally without any support from the state, they gradually become integrated into the social fabric of the city. To understand the evolution of the formal–informal boundaries of the practice, we argue that we should be paying attention to the specific institutional contexts that frame gardeners’ interactions with public authorities. Drawing from a study of citizen-led gardens in Mexico City, we show that informal urban gardening becomes a disconnected-from-the-state practice. On the one hand, the Mexico City government has shown a growing interest in regulating urban agriculture. On the other hand, gardeners are increasingly trying to find their own ways to formalize and perennate their practice. We suggest that this disconnection between gardeners and the state is best explained by the weakness of the institutional context in which their interactions take place. A top-down policymaking process, along with the incapacity and unwillingness of the multi-leveled city government to implement policies effectively, reinforces norms of mistrust and generates low expectations among gardeners as they interact with local authorities.     

Consumption coping strategies and well-being among refugee consumers

This paper aims to provide new insight into refugee consumers' adaptation to stress with a particular emphasis on consumption coping strategies and well-being. Drawing on the appraisal-coping theory, this paper proposes a theoretical framework relating stress to coping responses and refugee well-being. Social support is also introduced in the framework as a moderator. Examining the interplays between these concepts provides a comprehensive view of how changes in consumption patterns occur and how they affect refugee well-being. Insights from this paper suggest that consumption activities could be viewed as responses of adaptation to chronic and acute stress. To adapt to new circumstances and reduce their stress, refugee consumers could engage in adaptive consumption coping or maladaptive consumption coping (i.e., compulsive and impulsive consumption), which in turn affect their psychological and physical, family, and economic well-being. The paper contends that service support moderates the relationships between stress, coping responses, and refugee well-being.     

Board gender diversity and acquisition choices

We investigate the influence of gender diversity on the acquisition choices of bidding firms and find that firms with greater gender diversity are more likely to acquire nonlisted targets, use cash as the method of payment, and purchase firms in similar industries. Results show that these preferences are significantly influenced by female directors' financial expertise, target industry experience, mergers and acquisitions (M&A) experience, academic and professional qualifications, and networks. The percentage of female directors on boards is positively correlated with the market response to the announcement of acquisition choices preferred by female directors. Furthermore, bidders improve efficiency and accumulate long-term value gains through the contributions made by their female directors to these acquisition choices.     

Tariffs,R&D,and two merger policies

We compare welfare-increasing and consumer-surplus-increasing merger policies in an oligopoly when merging firms face endogenous trade policies, and engage in cost-reducing R&D activity. As R&D becomes less efficient, the equilibrium market structures (EMS) become less concentrated under both merger policies. When R&D is very efficient, monopoly becomes the EMS under the welfare-increasing merger policy. This occurs as the absence of tariff and efficient R&D under monopoly limit the price increase and the gain in profits outweighs the loss in consumer surplus and tariff revenue. The results suggest that trade policies should take into account merger policies and industries' R&D efficiency. The results also show that global welfare maximization requires global merger policy coordination.     

The object allocation problem with favoring upper ranks

We introduce (strict) favoring upper ranks, which is an extension of favoring higher ranks for random assignments. We demonstrate that ex post favoring ranks implies (strict) favoring upper ranks, and envy-freeness implies favoring upper ranks. Moreover, for at least four agents, no mechanism satisfies strict favoring upper ranks and either equal division lower bound or equal treatment of equals and lower invariance. Finally, we proved that the (modified) eating algorithm provides a random assignment that is (strict) favoring upper ranks.     

Ramsey rule with forward/backward utility for long-term yield curves modeling

Decisions in Economics and Finance - This paper draws a parallel between the economic and financial points of view in the modeling of long-term yield curves and provides new results on asymptotic...