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on Law and Economics |
| By: | Alessio D’Ignazio; Emanuele Giovannetti |
| Abstract: | In this paper we study concentration in the European Internet upstream access market. Measurement of market concentration depends on correctly defining the market, but this is not always possible as Antitrust authorities often lack reliable pricing and traffic data. We present an alternative approach based on the inference of the Internet Operators interconnection policies using micro-data sourced from their Border Gateway Protocol tables. Firstly we propose a price-independent algorithm for defining both the vertical and geographical relevant market boundaries, then we calculate market concentration indexes using two novel metrics. These assess, for each undertaking, both its role in terms of essential network facility and of wholesale market dominance. The results, applied to four leading Internet Exchange Points in London, Amsterdam, Frankfurt and Milan, show that some vertical segments of these markets are extremely competitive, while others are highly concentrated, putting them within the special attention category of the Merger Guidelines. |
| Keywords: | Network Industries, Internet, Market Concentration, Essential Facilities, BGP |
| JEL: | K21 L40 L86 L96 |
| Date: | 2005–11 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:0554&r=law |
| By: | Oxelheim, Lars (The Research Institute of Industrial Economics); Randoy, Trond (Agder University College and Agder Research) |
| Abstract: | This study examines the relation between the internationalization of firms and CEO compensation. Starting from a sample of Norwegian and Swedish listed firms we analyze the effects of internationalization as manifest in the capital market (international cross-listing), the market for corporate control (foreign board membership), and the product and service market (export and foreign sales). We conclude that all three markets contribute positively to the compensation level of CEOs. We argue that part of the higher CEO compensation in internationally oriented firms - as compared to less internationalized firms within the same country - reflects a risk premium for reduction in job security. |
| Keywords: | CEO Compensation; Internationalization; Corporate Governance; CEO Tenure; Cross-Listing; Foreign Board Membership |
| JEL: | G34 K12 M10 M12 |
| Date: | 2004–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:0611&r=law |
| By: | Joseph E. Stiglitz; Karla Hoff |
| Abstract: | How does the lack of legitimacy of property rights affect the dynamics of the creation of the rule of law? We investigate the demand for the rule of law in post-Communist economies after privatization under the assumption that theft is possible, that those who have "stolen" assets cannot be fully protected under a change in the legal regime towards rule of law, and that the number of agents with control rights over assets is large. We show that a demand for broadly beneficial legal reform may not emerge because the expectation of weak legal institutions increases the expected relative return to stripping assets, and strippers may gain from a weak and corrupt state. The outcome can be inefficient even from the narrow perspective of the asset-strippers. |
| JEL: | K0 |
| Date: | 2005–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11772&r=law |
| By: | Oleg V. Pavlov (Social Science and Policy Studies WPI) |
| Abstract: | Peer-to-peer technology has made massive music piracy possible, which, in turn, has arguably had a significant economic impact on the recording industry. Record labels have responded to online piracy with litigation and are also considering self-help measures. It is currently not obvious whether or not these counter-piracy strategies will ultimately stifle online file sharing in the long term. With this paper we attempt to add to our understanding of the conflict within the institution that is the commercial music industry. We conduct an institutional analysis of the industry in transition and extend the traditional pattern modeling methodology with a formal resource-based model of a representative online music network. The model accounts for complex causal interactions between resources, private provision of common goods, free riding and membership dynamics. The numerical implementation of the model is the basis of a decision support system, which is used in a series of computer experiments that emulate anti-piracy scenarios. We show that a peer-to-peer system may be quite resilient to outside disturbances. The experiments also demonstrate that policies rank differently in their effectiveness based on a selected yardstick. |
| Keywords: | Peer-to-peer (P2P) networks; Online File Sharing; Copyright; Simulation |
| JEL: | K40 H40 C60 |
| Date: | 2005–11–11 |
| URL: | http://d.repec.org/n?u=RePEc:sce:scecf5:233&r=law |
| By: | Marco Cozzi (Economics University College London and UPENN) |
| Abstract: | This paper develops a dynamic general equilibrium model to identify the impact of worse labour market conditions on the property crimes involvement of black American males. The related empirical evidence unambiguously shows higher participation in crime for black than for white males. In 1996, for example, the property crimes arrest rate by race (per 1.000 people) was equal to 6,43 for Whites and 18,3 for Blacks. Another set of stylised facts show for the same racial group worse labour market performances, with the African Americans supplying less hours of labour, gaining lower wages, experiencing both higher unemployment duration and rates. The theoretical model exploits the latter source of information to quantitatively assess the differences in crime induced by the different labour market outcomes. An infinitely lived agents model is developed, allowing for agents to be heterogeneous along four dimensions: race (synthesised by the labour market opportunities), education, employment status and asset holdings. The model is calibrated relying on US data and solved numerically. Preliminary results show that the observed labour market outcomes fully account for the substantial differences in the crime behaviours of the two racial groups. The model is in turn used both to understand to what extent the patterns in the race wage differentials can explain the observed decrease in the black labour supply and to compare some policy experiments aimed at reducing the aggregate crime rate |
| Keywords: | Property crimes, Race, Unemployment, Wealth Inequality. |
| JEL: | K42 D58 D99 J15 |
| Date: | 2005–11–11 |
| URL: | http://d.repec.org/n?u=RePEc:sce:scecf5:339&r=law |
| By: | Michael D. Makowsky (Economics George Mason University) |
| Abstract: | This paper presents an agent-based model of urban crime, mortality, and exogenous population shocks. Agent decision making is built around a career maximization function, with life expectancy as the key independent variable. Individual rationality is bounded by locally held information, creating a strong delineation between an objective and subjective reality. The effects of population shocks are explored using the Crime and Mortality Simulation (CAMSIM), with effects demonstrated to persist across generations. The potential for social simulation as a tool for the integration of theory across multiple disciplines is explored. CAMSIM is available via the web for future research by modelers and other social scientists. |
| Keywords: | Agent-based modeling, urban geography, crime |
| JEL: | J24 K42 R0 |
| Date: | 2005–11–11 |
| URL: | http://d.repec.org/n?u=RePEc:sce:scecf5:91&r=law |