2000


544. Probabilistic Choice as a Result of Mistakes

Lars-Göran Mattsson and Jörgen W. Weibull

We derive a family of probabilistic choice models including the multinomial logit model, from a microeconomic model in which the decision maker has to make some effort in order to avoid mistakes when implementing any desired outcome. The disutility of…


543. Efficiency Gains from Mergers

Lars-Hendrik Röller, Johan Stennek and Frank Verboven

The purpose of this report is to contribute to the analysis of two questions. Should a merger control system take into account efficiency gains from horizontal mergers, and balance these gains against the anti-competitive effects of mergers? If so, how…


542. Why Event Studies Do Not Detect Anti-Competitive Mergers

Sven-Olof Fridolfsson and Johan Stennek

Anticompetitive mergers increase competitors' profits, since they reduce competition. Using a model of endogenous mergers, we show that such mergers nevertheless may reduce the competitors' share-prices. Thus, event-studies can not detect anti-competitive…


541. Should Mergers be Controlled?

Sven-Olof Fridolfsson and Johan Stennek

Anticompetitive mergers benefit competitors more than the merging firms. We show that such externalities reduce firms' incentives to merge (a holdup mechanism). Firms delay merger proposals, thereby foregoing valuable profits and hoping other firms will…


540. The Foreign Operations of Swedish Manufacturing Firms: Evidence from a Survey of Swedish Multinationals 1998

Karolina Ekholm and Marie Hesselman

This paper presents the results of a survey of Swedish multinationals conducted in 1999. The survey was carried out in order to update an existing database on Swedish manufacturing firms with producing foreign affiliates collected by the Research…


539. Occupational Choice and Incentives:The Role of Family Background

Anna Sjögren

A model of occupational choice and human capital investment is developed and tested. The model allows family background to influence occupational choice via access to economic resources, differences in costs of schooling, and ability uncertainty. The…


538. Redistribution, Occupational Choice and Intergenerational Mobility: Does Wage Equality Nail the Cobbler to His Last?

Anna Sjögren

The classical Roy-model of selection on the labor market is extended in order to analyze intergenerational mobility. This is done by linking ability uncertainty to family background. I derive implications for the allocation of talent and for background…


537. Decentralisation of Active Labour Market Policy: The Case of Swedish Local Employment Service Committees

Martin Lundin and Per Skedinger

Decentralisation of decision-making in active labour market policy makes it possible to use local information to the fullest, but may also impinge on the fulfilment of national objectives, as suggested by principal-agent theory. The purpose of this study…


536. Strategic Investments in the Pulp and Paper Industry: A Count Data Regression Analysis

Mats Bergman and Per Johansson

This paper analyses the effects of price and market size variables on the investment propensities in the pulp and paper industry. A panel of 15 European countries in the time period 1984 - 1997 is used in the regression analysis. We find the wages, the…


535. What Are the Gains from Pension Reform?

Assar Lindbeck and Mats Persson

This paper presents a unified analytical framework for the analysis of social security reform. It discusses reform along two dimensions: Pay-As-You-Go versus fully funded on the one hand, and actuarial versus non-actuarial on the other. Making the system…


534. Deterministic Approximation of Stochastic Evolution in Games

Michel Benaim and Jörgen W. Weibull

This paper provides deterministic approximation results for stochastic processes that arise when finite populations recurrently play finite games. The deterministic approximation is defined in continuous time as a system of ordinary differential equations…


533. Where Schumpeter was nearly Right – the Swedish Model and "Capitalism, Socialism and Democracy"

Magnus Henrekson and Ulf Jakobsson

In Capitalism, Socialism and Democracy Joseph A. Schumpeter concluded that socialism would eventually displace capitalism in Western democracies. This would come about as a result of the superior performance of capitalism. We extract six "stylized"…


532. Privatization as a part of Liberalization Program in an International Oligopoly

Pehr-Johan Norbäck and Lars Persson

This paper determines the equilibrium market structure in an international oligopoly which is opened up by a privatization. Market power is shown to be an important determinant of the equilibrium market structure, when greenfield investment costs are…


531. Visits to the Client when Tendering for Consulting Contracts: Sourcing Information or Influencing the Contract

Roger Svensson

Consulting firms (CFs) sell services on a project basis to many clients and must therefore continuously tender for new contracts. One frequently used strategy by CFs is to visit the clients in connection to the tenders. The reason to the visits is either:…


530. Incentives for Academic Entrepreneurship and Economic Performance: Sweden and the United States

Magnus Henrekson and Nathan Rosenberg

The recent 'scientification' of commercial technology has brought the interface between universities and industry into sharp focus. In particular, academic entrepreneurship, i.e., the variety of ways in which academics take direct part in the…


529. Wage-Setting Institutions as Industrial Policy

Steven J. Davis and Magnus Henrekson

Centralized wage-setting institutions compress relative wages. Motivated by this fact, we investigate the effects of centralized wage setting on the industry distribution of employment. We examine Sweden's industry distribution from 1960 to 1994 and…


528. The Division of Labor and the Market for Organizations

Assar Lindbeck and Dennis J. Snower

The paper examines the determinants of the division of labor within firms. It provides an explanation of the pervasive observed changes in work organization away from the traditional functional departments and towards multi-tasking and job rotation.…


527. ICT and Household-Firm Relations

Assar Lindbeck and Solveig Wikström

This paper discusses how ICT and emerging electronic commerce in consumer products influence the relative efficiency in production of households and firms, resulting in changes in the division of tasks between these two types of agents. Increased…


526. Routes to Equity Market Integration - The Interplay between Politicians, Investors and Managers

Lars Oxelheim

Most econometric studies of equity market integration suggest that national markets are increasingly becoming part of a global equity market. As regards the extent of this integration, however, the results are often inconclusive. Further analysis calls…

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