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on Regulation |
| By: | Genakos, C.; Pagliero, M.; Sabatino, L.; Valletti, T. |
| Abstract: | Fixed book price (FBP) agreements are a form of resale price maintenance applied to books in various countries. FBP restricts retail price competition with the aim of promoting book production variety. Yet, despite its popularity and adoption in many countries, there is no empirical evidence on its effects. We offer systematic evidence on the impact of FBP on book variety and prices using a detailed new dataset from Italy that includes the universe of books published and bought, before and after the introduction of FBP. Our results indicate that FBP raises prices without significantly affecting the number of new books published in the marketplace. However, it also increases considerably the variety of books actually bought, especially from independent bookstores. We estimate a structural demand model that accounts for both effects, finding that consumers overall benefit from the regulation. |
| Keywords: | Cultural Goods, Resale Price Maintenance, Book Market, Ex-post Policy Evaluation |
| JEL: | L10 L40 L50 Z10 |
| Date: | 2025–03–18 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camdae:2514 |
| By: | Brianna Alderman (Harvard University); Roger Blair (University of Florida); Javier Donna (University of Miami) |
| Abstract: | We study the Microsoft-Activision acquisition through the lens of a complementary-product merger. When two complementary good producers consolidate, the merger is not horizontal because the two firms do not produce substitutable goods. Nor is the merger vertical, as neither firm supplies the other. We develop an economic model to study these types of mergers that allows for the possibility of rivals exiting the market. Three main conclusions flow from our analysis. (1) The welfare effects of the Microsoft-Activision acquisition are ambiguous; they depend on several industry factors. (2) One will not obtain the correct welfare effects using an incorrect vertical structure; harm to consumers will typically be larger in a complementary-product merger relative to a vertical one. (3) Consumer harm associated with rivals’ exit due to the merger might substantially reduce welfare even if it is a welfare-enhancing merger absent exit. Our analysis provides an analytical roadmap for the antitrust enforcement authorities regarding the theories of harm in complementary-good mergers. |
| Keywords: | Antitrust, Competition Policy, Regulation, Complementary Mergers, Vertical Mergers, Merger Identification. |
| JEL: | K21 K41 L13 L42 L44 L52 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:aoz:wpaper:359 |
| By: | Nauges, Céline; Wheeler, Sarah Ann; Grafton, Quentin R. |
| Abstract: | The allocation of water across space and time is a key challenge of water governance, with demand and supply often not well matched over time and place. Best practice water pricing and markets may promote water conservation, yet their application is limited. We highlight the governance principles needed for best practice water pricing and water markets, describe differences across regions, and provide six key water demand governance recommendations, for both Global North and Global South countries. |
| Keywords: | Global South; Global North; water trade; water markets; water crisis; water security; climate change; sustainable development; taxes; costs; tariffs; subsidies. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:tse:wpaper:130501 |
| By: | Kishore, P.; Roy, D.; Birthal, P.S.; Srivastava, S.K. |
| Abstract: | Policy supported technology-led intensification of agriculture has led to significant increases in agricultural productivity and food supplies in India. However, of late its negative externalities to natural resources, especially groundwater in semi-arid north-western region comprising the states of Punjab, Haryana and Rajasthan have become visible. Recognizing this, Punjab and Haryana brought out almost an identical groundwater regulation in 2009 which aligned sowing of water-guzzling paddy crop towards onset of the monsoon to prevent falling groundwater level. This paper reveals reveal that overextraction of groundwater continued even the regulation being in force. This perverse outcome could be due policy offsets such as highly subsidized electric power for irrigation, excessive procurement of paddy at minimum support price, stagnation in investment in major and medium irrigation schemes, and lack of incentives for crop diversification and adoption of water-saving technologies. It suggests a holistic approach for groundwater management, encompassing policies, technologies, incentives, institutions, and regulations. I am sure that policymakers will take due cognizance of this while designing a framework for groundwater governance. |
| Keywords: | Dairy Production/Industries, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies |
| Date: | 2024–04–01 |
| URL: | https://d.repec.org/n?u=RePEc:ags:icar24:344994 |
| By: | Pere Suau-Sanchez; Frédéric Dobruszkes; Giulio Mattioli |
| Abstract: | This study evaluates the effectiveness of airport slot reductions as a strategy for mitigating greenhouse gas (GHG) emissions, focusing on Amsterdam Schiphol Airport. Following the Dutch Government’s decision to reduce slots from 500, 000 to 440, 000, we analyse various risk scenarios using the D’Hondt method for proportional slot allocation and the Fuel Estimation in Air Transportation (FEAT) model to estimate fuel consumption. Strategies include proportional slot cuts, prioritising short-haul flights, and shifting to rail alternatives. Results show that short-term emissions reductions are modest and do not scale with slot reductions unless long-haul flights are significantly curtailed. Moreover, aircraft up-gauging could lead to increased emissions if airline behaviour is not addressed. Our findings challenge the effectiveness of slot reductions as a climate strategy, highlighting the importance of targeting long-haul flights and adopting comprehensive policies to achieve substantial emissions reductions. The study offers critical insights for sustainable aviation policy development. |
| Keywords: | Airport slots; Airport capacity; Aviation sustainability; Demand management; Amsterdam Airport |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/389974 |
| By: | Frédéric Marty (CNRS GREDEG, Université Côte d'Azur) |
| Abstract: | La loi du 21 mai 2024 visant à sécuriser et à réguler l’espace numérique a intégré en droit français les règlements européens sur les marchés numériques et sur les services numériques. Elle a distribué les responsabilités nouvelles liées à l’application de ces textes entre des autorités de régulation à compétence horizontale (telle l’Autorité de la concurrence) et des autorités de régulation à compétence verticale (à l’instar de l’Arcom et de la CNIL). Ce chapitre se propose d’analyser ce nouveau cadre institutionnel et pour éclairer les dynamiques qui peuvent en résulter pour la garantie de l’ordre concurrentiel et de l’ordre public économique face aux enjeux posés par les grands écosystèmes numériques et les manipulations dont ils peuvent être les vecteurs. |
| Keywords: | Digital ecosystems, competition, personal data protection, platforms regulation |
| JEL: | K21 K23 K42 L40 L50 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:afd:wpaper:2502 |
| By: | World Bank |
| Keywords: | Information and Communication Technologies-ICT Legal and Regulatory Framework Information and Communication Technologies-ICT Policy and Strategies |
| Date: | 2023–07 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:40073 |
| By: | Gagnepain, Philippe; Martimort, David |
| Abstract: | We explore empirically the impact of the market sharing collusive practices that were implemented in the French public transportation industry between 1994 and 1999. We build a structural model of bidding markets where innovating firms compete for the market and have the ability to spread the benefits of their innovation through all markets on which they are active. Each local competitive environment shapes the distribution of the prices (the bids) paid by public authorities to transport operators. We recover empirically the distribution of prices and innovation shocks and we show that collusive practices had overall a limited impact on prices. Firms were in reality more interested in avoiding significant financial risks inherent to the activity, as well as the high cost of preparing a tender proposal. As a by-product, we perform a counterfactual analysis that allows us to simulate how an increase in firms’ innovation reduces prices significantly. |
| Keywords: | Bidding Markets; Market Sharing; Collusion; Innovation; Public Transport |
| JEL: | D22 D44 K21 L9 |
| Date: | 2025–03–31 |
| URL: | https://d.repec.org/n?u=RePEc:tse:wpaper:130478 |
| By: | Axel Ockenfels (University of Cologne & Max Planck Institute for Research on Collective Goods, Bonn); David Bothe (Frontier Economics); Matthias Janssen (Frontier Economics) |
| Abstract: | Gasspeicher sind ein zentraler Baustein für eine sichere Energieversorgung und damit für eine funktionierende Wirtschaft und Gesellschaft. Derzeit bietet der Markt jedoch kaum Anreize, die Gasspeicher zu nutzen oder in deren Erhalt zu investieren. Im Gegenteil: Seit November letzten Jahres beobachten wir negative Sommer-Winter-Spreads – das heißt, Gas ist im Sommer teurer als im Winter. Es lohnt sich also für Marktakteure nicht, im Sommer Gas für den Winter einzuspeichern, obwohl der Bedarf in der kalten Jahreszeit deutlich höher ist. Kernursache für dieses umgekehrte Preissignal sind die Füllstandsvorgaben, die mit dem Gasspeichergesetz in der Energiekrise 2022 eingeführt wurden. Sie verpflichten sowohl die Marktteilnehmer als auch letztlich die Marktgebietsverantwortliche THE („Trading Hub Europe“), im Sommer für den Winter einzuspeichern – unabhängig von den Preissignalen. Das Ergebnis ist, dass der Markt unter Berücksichtigung der regulatorischen Vorgaben Gas im Sommer als knapper ansieht als im Winter. Der negative Sommer-Winter-Spread spiegelt dies wider. Der staatliche Eingriff konterkariert damit die verbleibenden kommerziellen Anreize zur Einspeicherung im Sommer und erhöht damit den notwendigen Umfang und die Kosten weiterer Eingriffe zur Speicherbefüllung. In diesem Beitrag diskutieren wir die Vor- und Nachteile verschiedener politischer und regulatorischer Handlungsoptionen zur Lösung dieses Dilemmas. Dazu gehören die Aufhebung oder Flexibilisierung der Füllstandsvorgaben, der derzeit von der Bundesregierung, der Bundesnetzagentur und THE erwogene Subventionsmechanismus („Strategisches Befüllungsinstrument“), der die Einspeisung bei negativen Sommer-Winter-Spreads alimentiert, sowie eine Strategische Reserve, bei der ein Teil der Speicherkapazität staatlich befüllt und außerhalb von Krisensituationen vom Markt zurückgehalten wird. |
| JEL: | Q41 Q48 D47 L95 H23 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:ajk:ajkpbs:066 |
| By: | Letz, Carolin; Rode, Johannes; Römer, Daniel |
| Abstract: | Heat pumps are a key technology for decarbonising domestic heat. In the past 10 years, sales of heat pumps have grown considerably in Germany and Europe. There are regional differences and heat pumps already have a very high market share particularly in northern Europe. This study examines the factors in play and analyses the influence of the relative electricity price on the diffusion of heat pumps. The empirical findings suggest that the electricity-to-gas price ratio is a relevant lever for strengthening the diffusion of heat pumps in Germany and Europe. Survey data from the KfW Energy Transition Barometer support this result, as households themselves also mention cost-effectiveness as a major factor for their use. This opens up options – particularly for a country like Germany, which also manufactures heat pumps. |
| Date: | 2025–02–20 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:153404 |
| By: | Eduardo Levy Yeyati; Ángeles Cortesi |
| Abstract: | Artificial intelligence (AI), particularly generative AI, has evolved rapidly, capturing the attention of policy makers, and raising important questions about regulation. This primer provides Latin American lawmakers a comprehensive overview of global AI regulatory efforts, proposes a taxonomy that categorizes the diverse approaches within the region’s socio-economic context, together with a set of guidelines and a toolkit of innovative strategies to address AI regulation in a flexible and forward-thinking manner. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:udt:wpgobi:202502 |
| By: | Adriana Alventosa (ERI-CES, Universitat de València); José Manuel Ordóñez-de-Haro (Departamento de Teoría e Historia Económica. Universidad de Málaga.); Javier Rodero Cosano (Smart Decision Lab, Departamento de Teoría e Historia Económica. Universidad de Málaga.) |
| Abstract: | This paper develops a dynamic discrete-time model of collusive behaviour in which firms can apply for leniency to reduce fines. We propose a sequential-move game inspired by the centipede game, capturing firms' incentives to be the first to self-report a cartel. The model examines cartel formation, stability, and recidivism, assuming that fines apply to the undiscovered record of collusion, not just current conduct. We find that when collusion is attractive but the leniency programme is not sufficiently generous, firms form a single cartel without self-reporting. However, when collusion is highly attractive and the leniency programme sufficiently generous, it can destabilize cartels but also foster recidivism: firms use leniency to ``clean the slate'' and restart collusion at a lower expected cost. This equilibrium behaviour may help explain the empirically observed prevalence of short-lived cartels and repeat offenders under existing leniency regimes. |
| Keywords: | Antitrust; Cartels; Recidivism; Leniency; Dynamic Games |
| JEL: | D43 K21 K42 L40 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:mal:wpaper:2025-2 |
| By: | Arthur Campbell (Department of Economics, Monash University, Australia); Geoffrey Go (Commonwealth Treasury, Australia); Chengsi Wang (Department of Economics, Monash University, Australia) |
| Abstract: | Content creators produce original work, while digital platforms share secondary versions to generate ad revenue, often without compensating them. This imbalance may reduce incentives for creating high-quality content, leading to government interventions aiming to re-balance the bargaining strengths. This paper examines how enhancing content creators' bargaining strength affects investments in primary and secondary content and subscription prices. While it directly boosts secondary content quality, the intervention's impact on primary content is ambiguous due to the opposite awareness and pricing effects. Cannibalization between primary and secondary contents may contribute to or impede quality improvement. These dynamics hold across subscription and advertising-based models and the analysis extends to two-sided investments. |
| Keywords: | advertising, online platforms, content sharing, journalism. |
| JEL: | L52 L82 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:mos:moswps:2025-04 |
| By: | Hiroshi Kitamura; Noriaki Matsushima; Misato Sato; Wataru Tamura |
| Abstract: | This study constructs a model of exclusive-offer competition between two existing upstream firms. Under exclusive-offer competition, the upstream firm's profit depends on the rival's exclusive offer. If the rival makes an exclusive offer acceptable for the downstream firm, the upstream firm is excluded unless it succeeds in exclusion. Consequently, the upper bound of exclusive offers becomes higher than when one of the upstream firms is a potential entrant that cannot make any exclusive offer. Thus, the exclusion of the existing upstream firm can be an equilibrium outcome even in the case where the potential entrant is never excluded. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:dpr:wpaper:1280 |
| By: | Bruno Deffains (CRED - Université-Paris-Panthéon-Assas); Frédéric Marty (CNRS GREDEG, Université Côte d'Azur) |
| Abstract: | The implementation of generative artificial intelligence in legal services offers undeniable efficiency gains, but also raises fundamental issues for law firms. These challenges can be categorised along a broad continuum, ranging from changes in business lines to changes in the competitive environment and the internal organisation of law firms. This paper considers the risks that law firms face in terms of both the quality of the services they provide and perceived competition, both horizontally and vertically, considering possible relationships of dependency on suppliers of large language models and cloud infrastructures. |
| Keywords: | Generative artificial intelligence, legal services, accountability, competition, vertical relationships |
| JEL: | L42 L86 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:afd:wpaper:2503 |
| By: | Dirk Bergemann (Yale University); Alessandro Bonatti (Massachusetts Institute of Technology); Nicholas Wu (Yale University) |
| Abstract: | In digital advertising, the allocation of sponsored search, sponsored product, or display advertisements is mediated by auctions. The generation of bids in these auctions for attention is increasingly supported by auto-bidding algorithms and platform-provided data. We analyze the equilibrium properties of a sequence of increasingly sophisticated auto-bidding algorithms. First, we consider the equilibrium bidding behavior of an individual advertiser who controls the auto bidding algorithm through the choice of their budget. Second, we examine the interaction when all bidders use budget-controlled bidding algorithms. Finally, we derive the bidding algorithm that maximizes the platformÕs revenue while ensuring all advertisers continue to participate. |
| Date: | 2025–03–02 |
| URL: | https://d.repec.org/n?u=RePEc:cwl:cwldpp:2429 |
| By: | World Bank; Global Facility for Disaster Reduction and Recovery |
| Keywords: | Law and Development-Infrastructure and Law Infrastructure Economics and Finance-Infrastructure Regulation Environment-Adaptation to Climate Change Urban Development-National Urban Development Policies & Strategies |
| Date: | 2023–06 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:39900 |