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Cooperative R&D for a New Product under Convex Production Costs (2024)
Journal Article
Mukherjee, A. (2024). Cooperative R&D for a New Product under Convex Production Costs. Journal of Institutional and Theoretical Economics, 180(3), 401-424. https://doi.org/10.1628/jite-2024-0001

The role of knowledge spillover for cooperative research and development (R&D), where firms commit before R&D about sharing R&D outcomes and choosing joint profit maximising R&D investments, is well known. In a duopoly model of product innovation wit... Read More about Cooperative R&D for a New Product under Convex Production Costs.

Lobbying for Tariff Protection, International Technology Licensing and Consumer Surplus (2023)
Journal Article
Liu, Y., & Mukherjee, A. (2023). Lobbying for Tariff Protection, International Technology Licensing and Consumer Surplus. B.E. Journal of Economic Analysis and Policy, 24(1), 117-139. https://doi.org/10.1515/bejeap-2022-0259

It is well known that the protectionist view for tariff protection can be justified if the tariff induced international technology licensing benefits the consumers. We show that this view may not hold true if the domestic firm lobbies for tariff prot... Read More about Lobbying for Tariff Protection, International Technology Licensing and Consumer Surplus.

Merger and product innovation under cross ownership and cooperative R&D (2023)
Journal Article
Mukherjee, A. (2023). Merger and product innovation under cross ownership and cooperative R&D. Economics Letters, 233, Article 111418. https://doi.org/10.1016/j.econlet.2023.111418

We show that merger may increase investments in product innovation, and expected welfare if there is either passive cross ownership or cooperative research. Hence, the antitrust authorities may not need to be too concerned about mergers in these situ... Read More about Merger and product innovation under cross ownership and cooperative R&D.

Product Market Cooperation, Foreign Direct Investment and Consumer Welfare (2023)
Journal Article
Mukherjee, A., & Sinha, U. B. (2024). Product Market Cooperation, Foreign Direct Investment and Consumer Welfare. Review of Industrial Organization, 64, 315-326. https://doi.org/10.1007/s11151-023-09925-x

Cooperation among rival firms raises serious skepticism among economists, policymakers, and legal experts, since it generally hurts consumers. We show that this may not be the case in an open economy with strategic foreign direct investment (FDI). Un... Read More about Product Market Cooperation, Foreign Direct Investment and Consumer Welfare.

Mergers of complements, endogenous product differentiation and welfare (2023)
Journal Article
Han, T.-D., & Mukherjee, A. (2023). Mergers of complements, endogenous product differentiation and welfare. Mathematical Social Sciences, 126, 30-41. https://doi.org/10.1016/j.mathsocsci.2023.09.001

The static analysis shows that a merger among complementary input suppliers or complementary patent holders benefits the consumers and the society by reducing the input prices. We show that the effects of a merger of complements are not so straightfo... Read More about Mergers of complements, endogenous product differentiation and welfare.

Low tariff on dirty goods—Environmental negligence or environmental concern? (2023)
Journal Article
Marjit, S., & Mukherjee, A. (2023). Low tariff on dirty goods—Environmental negligence or environmental concern?. Review of International Economics, 31(4), 1246-1270. https://doi.org/10.1111/roie.12662

Shapiro (Quarterly Journal of Economics, 2021) conducts an in-depth empirical analysis to show that dirtier upstream goods face lower import tariffs than cleaner downstream goods. Inspired by that paper, we examine how the welfare maximizing tariffs... Read More about Low tariff on dirty goods—Environmental negligence or environmental concern?.

Losses from cross-holdings in a duopoly with convex cost and strategic input price determination (2023)
Journal Article
Mukherjee, A. (2023). Losses from cross-holdings in a duopoly with convex cost and strategic input price determination. Economic Theory Bulletin, 11, 81-91. https://doi.org/10.1007/s40505-022-00241-3

It is well-known that positive output externality on the outside firms is the reason for unprofitable passive cross-holding, which refers to a situation where a producer holds non-controlling shares in rival firms. Considering a final goods market wi... Read More about Losses from cross-holdings in a duopoly with convex cost and strategic input price determination.

The Connection between Imported Inputs and Exports: The Importance of Strategic Interdependence (2023)
Journal Article
Mukherjee, A., & Liu, Y. (2023). The Connection between Imported Inputs and Exports: The Importance of Strategic Interdependence. Games, 14(1), Article 6. https://doi.org/10.3390/g14010006

Ignoring strategic interactions among final goods producers, the extant theoretical literature shows that lower costs of imported inputs increase the exports of the final goods using those inputs. Hence, it does not explain the empirically relevant p... Read More about The Connection between Imported Inputs and Exports: The Importance of Strategic Interdependence.

Pioneer, early follower or late entrant: Entry dynamics with learning and market competition (2023)
Journal Article
Chen, C. H., Mukherjee, A., & Ishida, J. (2023). Pioneer, early follower or late entrant: Entry dynamics with learning and market competition. European Economic Review, 152, Article 104360. https://doi.org/10.1016/j.euroecorev.2022.104360

Timing of market entry is one of the most important strategic decisions a firm must make, but its decision process becomes convoluted with information and payoff externalities. The threat of competition pushes firms to enter earlier to preempt their... Read More about Pioneer, early follower or late entrant: Entry dynamics with learning and market competition.

Optimal patent licensing—Two or three‐part tariff (2022)
Journal Article
Banerjee, S., Mukherjee, A., & Poddar, S. (2022). Optimal patent licensing—Two or three‐part tariff. Journal of Public Economic Theory, 25(3), 624-648. https://doi.org/10.1111/jpet.12630

We look into technology transfer by an insider patentee in a spatial duopoly model under three types of licensing contracts—(i) two-part tariff with fixed fee and per-unit royalty, (ii) two-part tariff with fixed fee and ad-valorem royalty and (iii)... Read More about Optimal patent licensing—Two or three‐part tariff.

Social desirability of entry in a bilateral oligopoly—The implications of (non) sunk costs (2022)
Journal Article
Mukherjee, A., & Zeng, C. (2022). Social desirability of entry in a bilateral oligopoly—The implications of (non) sunk costs. Mathematical Social Sciences, 118, 12-19. https://doi.org/10.1016/j.mathsocsci.2022.05.002

We show the implications of sunk investments for social efficiency of downstream-entry in a bilateral oligopoly. The possibility of socially excessive entry increases as the percentage of non-sunk investments increases. If there are no sunk investmen... Read More about Social desirability of entry in a bilateral oligopoly—The implications of (non) sunk costs.

Social Efficiency of Market Entry Under Tax Policy (2022)
Journal Article
Basak, D., & Mukherjee, A. (2022). Social Efficiency of Market Entry Under Tax Policy. B.E. Journal of Economic Analysis and Policy, 22(3), 601-610. https://doi.org/10.1515/bejeap-2022-0012

We provide a new rationale for socially insufficient market entry. We show that if the shadow cost of public funds is sufficiently high, the number of firms under free entry can be socially insufficient if the tax policies are "time inconsistent", so... Read More about Social Efficiency of Market Entry Under Tax Policy.

Social Efficiency of Entry in a Vertical Structure with Third Degree Price Discrimination (2022)
Journal Article
Chen, J., Mukherjee, A., & Zeng, C. (2023). Social Efficiency of Entry in a Vertical Structure with Third Degree Price Discrimination. BE Journal of Theoretical Economics, 23(1), 223-243. https://doi.org/10.1515/bejte-2021-0069

We study social efficiency of entry in the presence of downstream cost asymmetry and upstream price discrimination. We show that entry is excessive when the entrants are highly inefficient, and it is insufficient when either the entrants are efficien... Read More about Social Efficiency of Entry in a Vertical Structure with Third Degree Price Discrimination.

Wage bargaining and product innovation: The role of market expansion effect (2022)
Journal Article
Basak, D., Hoefele, A., & Mukherjee, A. (2022). Wage bargaining and product innovation: The role of market expansion effect. Manchester School, 90(3), 319-340. https://doi.org/10.1111/manc.12398

Using the right-to-manage model of union-firm bargaining, we show that a higher union power increases product innovation if the bargaining is decentralised, the market expansion effect is weak, and the cost of innovation is relatively low. Otherwise,... Read More about Wage bargaining and product innovation: The role of market expansion effect.

Competition and Innovation in Markets with Technology Leaders (2021)
Journal Article
Tsao, K.-C., Mukherjee, A., & Ray, A. (2022). Competition and Innovation in Markets with Technology Leaders. Games, 13(1), Article 9. https://doi.org/10.3390/g13010009

We consider technology leaders (which are innovators) and technology followers (which are non-innovators) to provide a new theoretical explanation for the well-cited empirical evidence of an inverted-U relationship between competition and aggregate i... Read More about Competition and Innovation in Markets with Technology Leaders.

Social Efficiency of Entry in an Open Economy (2021)
Journal Article
Han, T.-D., Haque, M. E., & Mukherjee, A. (2022). Social Efficiency of Entry in an Open Economy. B.E. Journal of Economic Analysis and Policy, 22(1), 203-219. https://doi.org/10.1515/bejeap-2020-0097

We show that cost asymmetry between the domestic and foreign firms is not necessary for the occurrence of insufficient entry in the domestic country. This result provides a rationale for pro-competitive domestic policies even in the absence of cost a... Read More about Social Efficiency of Entry in an Open Economy.

Competition, External Economies of Scale, and Unionized Wage (2021)
Journal Article
Basak, D., & Mukherjee, A. (2021). Competition, External Economies of Scale, and Unionized Wage. Journal of Industry, Competition and Trade, 21(4), 585-592. https://doi.org/10.1007/s10842-021-00369-1

We provide a rationale for the mixed relationship between product market competition and unionized wage, and more importantly, for a generally unexplained empirical evidence of a positive relationship between product market competition and unionized... Read More about Competition, External Economies of Scale, and Unionized Wage.

Product Differentiation in a Vertical Structure (2020)
Journal Article
Han, T.-D., Haque, M. E., & Mukherjee, A. (2022). Product Differentiation in a Vertical Structure. BE Journal of Theoretical Economics, 22(1), 105-122. https://doi.org/10.1515/bejte-2020-0037

We consider final goods producers' preference for horizontal product differentiation in the presence of strategic input price determination. Final goods producers may not prefer maximal differentiation but may prefer moderate differentiation under bo... Read More about Product Differentiation in a Vertical Structure.