nep-ind New Economics Papers
on Industrial Organization
Issue of 2017‒06‒25
four papers chosen by
Kwang Soo Cheong
Johns Hopkins University

  1. Merger and Innovation Incentives in a Differentiated Industry By Kesavayuth, Dusanee; Lee, Sang-Ho; Zikos, Vasileios
  2. The public sector and privatization policy By Radygin Alexandr; Malginov Georgiy
  3. Insiders vs outsiders in the hotel sector: is it worth entering an official classification system? By Olivier Beaumais; Sauveur Giannoni
  4. Russian oil and gas sector in 2016 By Bobylev Yuri

  1. By: Kesavayuth, Dusanee; Lee, Sang-Ho; Zikos, Vasileios
    Abstract: In this paper, we consider a duopoly with product differentiation and examine the interaction between merger and innovation incentives. The analysis reveals that a merger tends to discourage innovation, unless the investment cost is sufficiently low. This result holds whether or not side payments between firms are allowed. When side payments are permitted, a bilateral merger-to-monopoly is always profitable, a standard result in the literature. When side payments are not permitted, however, we show that a merger is not profitable when the efficiency of the new technology is relatively high and the investment cost is below a particular level.
    Keywords: Merger, R&D, innovation, differentiated products
    JEL: D21 L13 L41 O31
    Date: 2017–06–21
  2. By: Radygin Alexandr (Gaidar Institute for Economic Policy); Malginov Georgiy (Gaidar Institute for Economic Policy)
    Abstract: In 2016, statistical data began to be published in the framework of the newly introduced System of Public Property Management Efficiency Estimates. It was approved by Decree of the RF Government of 29 January 2015, No 72 and introduced by way of replacing the public sector monitoring data, collected and released by the Federal State Statistics Service (Rosstat) since the late 1990s in accordance with the provisions stipulated in Decree of the RF Government of January 4, 1999, No 1 (as amended as of December 30, 2002). Among other things, the System of Public Property Management Efficiency Estimates contains data on the number of federal state unitary enterprises (FSUEs) and joint-stock companies (JSCs) with RF stakes in their capital, which previously were published as part of government privatization programs (from 2011 – for three-year period, and prior to 2011- for one-year period.
    Keywords: Russian economy, public sector, privatization
    JEL: K11 H82 L32 L33
    Date: 2017
  3. By: Olivier Beaumais (Laboratoire Lieux, Identités, eSpaces et Activités (LISA)); Sauveur Giannoni (Laboratoire Lieux, Identités, eSpaces et Activités (LISA))
    Keywords: hotel rating; rate premium; endogeneity; recursive semi-ordered probit
    JEL: L15 L83 C35
    Date: 2017–06
  4. By: Bobylev Yuri (Gaidar Institute for Economic Policy)
    Abstract: The oil and gas sector is among principal sectors of the Russian economy and is the driving force in shaping the state budget revenues and the trade balance. In 2016, Russia’s crude oil production hit an all-time peak since 1990, and crude oil exports were close to an all-time high. Under the so-called tax maneuver in force in the oil industry, refining depth went up noticeably, production and export of fuel oil moved down and export of crude oil, a highly lucrative source of the budget revenues, increased.
    Keywords: Russian economy, oil and gas sector, oil production, oil prices, oil and gas export
    JEL: L71 L72
    Date: 2017

This nep-ind issue is ©2017 by Kwang Soo Cheong. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.