We consider bargaining between a number of players that are all essential in creating a surplus. One of the players is dominant in the sense that it ultimately decides whether the surplus will be created. The other players have an incentive to get a large share of the pie for themselves, but leaving enough for the dominant firm that it finds it profitable to create the surplus. Hence, the smaller ...

In a context of bilateral bargaining between an upstream supplier and several downstream buyers, this note determines the conditions under which two buyers have an incentive to merge depending on whether (i) the bargaining process is simultaneous or sequential and (ii) the post merger buyer becomes pivotal or not. We also determine conditions under which the players will prefer to bargain ...

Regional convergence studies have relied on net migration data in assessing the impact of migration. With heterogeneous labour, the implied symmetrical treatment of immigration and emigration cannot be justified a priori.. Because of heterogeneity among migrants, gross migration flows may lead to considerable interregional redistribution of human capital even when net migration is zero. Moreover, ...

This paper gives an overview of bioeconomic modelling of marine reserves, and illustrates how economists have responded to the modelling results found in the ecological literature. The economic analysis is shown to be far more pessimistic with regard to the potential of marine reserves as a fisheries management tool, than what one finds in the purely ecological analysis, the reason being the ...

This paper analyses the endogenous formation of technology sharing coalitions with asymmetric firms. Coalition partners enjoy perfect spillovers from technology advancements by their coalition partners, but each firm determines its R&D investment level non-cooperatively and there is no co-operation in the product market. We show that the equilibrium coalition outcome is one between the two most ...

We study the incentives for firms to share knowledge when they engage in R&D in order to make an uncertain innovation. The ini- tial stock of knowledge may be unevely distributed, and we look at how this affects the type of cooperative agreements that the firms will find it profitable to enter in to. Specifically, we consider the cases in which firms share initial knowledge only (reciprocal ...

In this paper we analyze the interconnection incentives for firms that have an installed base of customers and that also compete for new customers. We show that the small firm may be harmed in the competition for new customers if the customers in the installed bases are charged a high price, since this makes the large firm more aggressive. It is also shown that the price charged to the installed ...

The Norwegian salmon farming industry is one of the most important Norwegian export industries. The industry is also regulated to secure balanced and sustainable development. Current regulatory practice consists of licensing access to sea water. The government recently set an upper bound on the license fees; the purpose of our paper is to estimate the shadow price of the property right to determine ...

This paper compares Bertrand and Cournot equilibria in a differentiated duopoly with R&D competition or cooperation, where R&D may affect both unit cost of production and the size of the market. This combination of product and process innovation is shown to allow for the reversal of some results found in earlier models that only look at one of the two types of R&D effects. We find that for a ...

We consider a pie-splitting game involving three committee members. In response to the large literature on sequential procedures in this type of game, we propose an institution that is inspired by auction theory. The (sealed) bids of the players are proposals for a distribution of the pie and are given simultaneously. If any of the bids is preferred to all others in a pairwise comparison (i.e. ...