After a drug obtains marketing authorization, the usage depends on the regulation of off-label prescriptions for unapproved indications. We investigate the impact of off-label prescription regulation on physicians’ behavior, patients’ health, treatment costs, and pharmaceutical firms’ pricing with a structural demand and supply model. Exploiting ri...
Alliances of buyers to negotiate input prices with suppliers are commonplace. Using pre- and post-alliances data on bottled water purchases, I develop a structural model of bilateral oligopoly to estimate the effects of three alliances formed by retailers on their bargaining power vis-à-vis manufacturers and retail prices paid by consumers. The res...
Motivated by the new practice of cross-licensing and price competition in smart products, as well as the lack of cross-licensing literature, this article develops a theoretical framework to investigate the incentive for bilateral cross-licensing between two competing firms with asymmetric bargaining power under price competition in smart products. ...
Value creation forms the basis for the construction of global value chains (GVCs) and has received significant scholarly attention, yet the issue of value capture or power distribution along supply chains, "within" industries, is still unresolved. A recent framework of property rights (Antràs and Chor, 2013; Alfaro et al., 2019) highlights how fina...
Value creation forms the basis for the construction of global value chains (GVCs) and has received significant scholarly attention, yet the issue of value capture or power distribution along supply chains, "within" industries, is still unresolved. A recent framework of property rights (Antràs and Chor, 2013; Alfaro et al., 2019) highlights how fina...
We develop a bilateral oligopoly framework with manufacturer-retailer bargaining to analyze the impact of retail mergers on market outcomes. We show that the surplus division between manufacturers and retailers depends on three bargaining forces and can be interpreted in terms of an “equilibrium of fear”. We estimate our framework in the French sof...
This paper provides a simple model of identity salience that is applied to the phenomenon of the recent rise in right-wing populism in the Western world. Trade and capital flows, skill-biased technological change, and migration have led to declining employment and wages in these economies and a parallel rise in economic and cultural populism, tappi...
Published in Proceedings of the National Academy of Sciences of the United States of America
Globalizing economies and long-distance trade rely on individuals from different cultural groups to negotiate agreement on what to give and take. In such settings, individuals often lack insight into what interaction partners deem fair and appropriate, potentially seeding misunderstandings, frustration, and conflict. Here, we examine how individual...
Published in Review of economics of the household
We model push factors that determine the domestic migration decisions for couples, with emphasis on dual-earner different-sex couples. Unlike many prior studies that concentrate on labour market determinants of migration, we place the subjective well-being (SWB) reported by each partner at centre stage. We test whether migration determinants differ...
In virtually every military crisis encountered by the United States, questions of the authorityunder which the president is acting (and whether the legislature should grant some kind of authorization) are heavily debated in Congress and in the press. Despite this, political science has given little attention to the war powers debate in domestic pol...
