2001


569. Investment Liberalization – Who Benefits from Cross-Border Mergers & Acquisitons?

Pehr-Johan Norbäck and Lars Persson

Investment liberalizing countries are often concerned that cross-border mergers & acquisitions might have an adverse effect on domestic firms and benefit multinational enterprises (MNEs). However, given that domestic assets are sufficiently scarce, we…


568. Campaigning and Ambiguity when Parties Cannot Make Credible Election Promises

Andreas Westermark

This paper studies a model of how political parties use resources for campaigning to inform voters. Each party has a predetermined ideology drawn from some distribution. Parties choose a platform and campaign to inform voters about the platform. We find…


567. The Impact of Foreign Board Membership on Firm Value

Lars Oxelheim and Trond Randøy

This study examines the effect of foreign (Anglo-American) board membership on corporate performance measured in terms of firm value (Tobin’s Q). On a basis of firms with headquarters in Norway or Sweden the study indicates a significantly higher value…


566. The Transformation of Ownership Policy and Structure in Sweden: Convergence towards the Anglo-Saxon Model?

Magnus Henrekson and Ulf Jakobsson

We investigate the dramatic transformation of ownership policies and ownership structure in Sweden during the postwar period. After WWII, Swedish ownership policies were guided by a socialist vision where the ultimate goal was abolition of private…


565. Social Norms and Optimal Incentives in Firms

Steffen Huck, Dorothea Kübler and Jörgen Weibull

This paper deals with the interplay between economic incentives and social norms in firms. We outline a simple model of team production and provide preliminary results on linear incentive schemes in the presence of a social norm that may cause multiple…


564. On the Cultural Transmission of Corruption

Ester Hauk and María Sáez-Martí

We provide a cultural explanation to the phenomenon of corruption in the framework of an overlapping generations model with intergenerational transmission of values. We show that the economy has two steady states with different levels of corruption. The…


563. The Insiders' Dilemma: An Experiment on Merger Formation

Tobias Lindqvist and Johan Stennek

This paper tests the insiders' dilemma hypothesis in a laboratory experiment. The insiders' dilemma means that a profitable merger does not occur, because it is even more profitable for each firm to unilaterally stand as an outsider (Kamien and Zang, 1990…


562. Government-Mandated Discriminatory Policies

Hanming Fang and Peter Norman

This paper provides a simple explanation for why some minority groups are economically successful, despite being subject to government-mandated discriminatory policies. We study an economy with private and public sectors in which workers invest in…


561. Unfair Competition by Government Firms and Authorities in the Consulting Market

Roger Svensson

Government firms and authorities often sell services in the free market via affiliated consulting firms (CFs). In this study, I analyze whether these agents have an unfair competitive edge compared to private CFs. The theoretical analysis shows that…


560. Strategic Investment and Market Integration

Mattias Ganslandt

The competitive effect of international market integration in industries with imperfect competition is of great policy interest. This paper focuses on the link between monopolization and market segmentation. It presents a model of multi-market entry…


559. Pricing Strategies in E-Commerce: Bricks vs. Clicks

Richard Friberg, Mattias Ganslandt and Mikael Sandström

What is the impact of the increasing dominance of conventional firms in e-commerce? We use a simple model to show that retailers who only sell through Internet have lower on-line prices than retailers who also sell through conventional stores. This…


558. Horizontal Mergers Without Synergies May Increase Consumer Welfare

Johan Stennek

Markets with imperfect competition do not induce a cost-minimizing allocation of production between firms. The market's ability to rationalize production is even more limited if costs are private information to firms. Merger in such markets generate an…


557. Raising Children to Work Hard: Altruism, Work Norms and Social Insurance

Assar Lindbeck and Sten Nyberg

Children who can count on support from altruistic parents may not try hard to succeed in the labor market. Moreover, parental altruism makes withdrawal of such support non-credible. To promote work effort, parents may want to instill norms which later…


556. Merger Control and Enterprise Competitiveness – Empirical Analysis and Policy Recommendations

Johan Stennek and Frank Verboven

This report studies the importance of efficiency gains from horizontal mergers. A general theme throughout this report is that efficiency gains, and their pass-on to consumers, may vary substantially from merger to merger. For this reason it seems…


555. Bilateral Oligopoly

Jonas Björnerstedt and Jonas Stennek

In intermediate goods markets, both buyers and sellers normally have market power, and sales are based on bilaterally negotiated contracts specifying both price and quantity. In our model, pairs of buyers and sellers meet in bilateral but interdependent…


554. On the Treatment of Finance-Specific Factors within the OLI Paradigm

Lars Oxelheim, Trond Randøy and Arthur Stonehill

This article argues that the body of foreign direct investment (FDI) literature in general and the ownership, location, and internalization (OLI) paradigm in particular would be enriched if finance-specific factors are explicitly incorporated as drivers…


553. Does FDI Work as a Channel for R&D Spillovers? Evidence Based on Swedish Data

Henrik Braconier, Karolina Ekholm and Karen Helene Midelfart Knarvik

Multinational enterprises (MNEs) are important in transmitting technology across national borders. Not only do they allow for transfer of technology within the firm, but it is also believed that they are important channels for international R&D…


552. Developing and Distributing Essential Medicine to Poor Countries: The DEFEND Proposal

Mattias Ganslandt, Keith E. Maskus and Eina V. Wong

The poorest nations of the world suffer from extreme disease burdens, which go largely untreated because weak incomes and the prevailing system of intellectual property rights fail to provide sufficient incentives to develop new treatments and distribute…


551. Is Human Capital the Key to the IT Productivity Paradox?

Gudmundur Gunnarsson, Erik Mellander and Eleni Savvidou

Unlike previous analyses, we consider (i) that IT may affect productivity growth both directly and indirectly, through human capital interactions, and (ii) possible externalities in the use of IT. Examining, hypothetically, the statistical consequences of…


550. Changing Tides for the Welfare State – An Essay

Assar Lindbeck

Recent developments in society have generated misalignment between the welfare state and socio-economic conditions and preferences. This paper emphasis developments in the labor market and the structure, stability and preferences of the family, as well as…


549. Cooperative Product Development and Endogenous Information Sharing

Antje Baerenss

In this paper, a model of product innovation is developed that endogenizes the degree of cooperation. Two opposing forces affect firm profit in an R&D joint venture. Cooperation increases the quality of the product but it also makes the new products…


548. Pensions and Contemporary Socioeconomic Change

Assar Lindbeck

The paper discusses the consequences for the functioning of different pension systems of various types of socioeconomic changes, mainly demographic developments, variations in productivity growth and changes in real interest rates. Two of the pension…


547. National Standards and International Trade

Mattias Ganslandt and James R. Markusen

Standards and technical regulations which govern the admissibility of imported goods into an economy raise costs of exporters entering new markets, and may have a particularly high impact on firms seeking to export from developing countries. Yet standards…


546. Parallel Imports of Pharmaceutical Products in the European Union

Mattias Ganslandt and Keith E. Maskus

imports is unlimited, the manufacturer chooses deterrence and international prices converge. Second, with endogenously limited arbitrage the manufacturing firm accommodates and the price in the home market falls as the volume of parallel trade rises.…


545. Privatization and Foreign Competition

Pehr-Johan Norbäck and Lars Persson

This paper determines the equilibrium market structure in a mixed international oligopoly, where the state assets are sold at an auction. The model suggests that low greenfield costs and low trade costs induce foreign acquisitions. The intuition is that…

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