A Comparison of the HHI and the Procurement-Based Framework in Merger Review
by Kenneth Gong Abstract The Herfindahl-Hirschman Index (HHI), a measure of market concentration, plays a critical role in the U.S. Merger Guidelines. It is used as a threshold metric that marks certain mergers as potentially harmful to consumers. However, the microfoundations for the HHI are grounded in the Cournot oligopoly model, which may not be […]
Optimizing the Electricity Bill Creating a two-part electricity tariffs to induce a targeted level of rooftop solar adoption while meeting utility operating expenses
By Hoel Weisner Renewable energy technologies are a much needed, clean alternative to the conventional fossil fuel electricity power plants of the last century. The market for installing solar panels on rooftops is a highly promising avenue for expanding the use of these technologies, but its profitability depends significantly on the electricity prices offered by […]
Market Power & Reciprocity Among Vertically Integrated Cable Providers
By Jeffery Shih-kai Shen This paper seeks to investigate the effects of vertical integration on the cable industry. There are two main goals that the research paper will attempt to address. The first is to build upon existing research on favoritism shown by multichannel video programming distributors (MVPDs) to affiliated video programming networks. Second, the […]
Collusion with Three Bidders at First-Price Auctions
By Andrew Born Lopomo, Marx, & Sun (2009) show that, given a speci fied environment, pro table collusion is not possible for a two-person bidding ring operating at a fi rst-price sealed-bid auction. This research investigates the rigor of their result by expanding the theoretical framework to the case of a three-bidder cartel. The output generated from the […]
