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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., 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., 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., 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.

Firm-productivity and cross border merger (2020)
Journal Article
Mukherjee, A., & Senalp, U. E. (2021). Firm-productivity and cross border merger. Review of International Economics, 29(4), 838-859. https://doi.org/10.1111/roie.12510

We examine whether higher productivity of a foreign firm increases the incentive for a cross border merger, which is a dominant form of foreign direct investment in recent decades. In line with the empirical evidence, we show that the relationship be... Read More about Firm-productivity and cross border merger.

Patents versus rewards: the implications of production inefficiency (2020)
Journal Article
Bagchi, A., & Mukherjee, A. (2021). Patents versus rewards: the implications of production inefficiency. German Economic Review, 22(2), 215-234. https://doi.org/10.1515/ger-2019-0092

It is believed that if there is no informational asymmetry between firms and the government, firms could be remunerated for innovation using optimal taxation rather than patents. We show that under reasonable conditions (such as the government's inab... Read More about Patents versus rewards: the implications of production inefficiency.

Information Disclosure through Technology Licensing (2020)
Journal Article
Mukherjee, A., & Bagchi, A. (2020). Information Disclosure through Technology Licensing. Games, 11(3), Article 37. https://doi.org/10.3390/g11030037

We show that if information transmission through an honest outside agency is not possible due to the possibility of collusion between the firms and the outside agency, information transmission is possible through technology licensing. However, unlike... Read More about Information Disclosure through Technology Licensing.

R&D competition and the persistence of technology leadership (2020)
Journal Article
Beladi, H., & Mukherjee, A. (2022). R&D competition and the persistence of technology leadership. International Journal of Economic Theory, 18(3), 272-284. https://doi.org/10.1111/ijet.12289

We show that whether a technology leader invests more in R&D compared to a technology follower may depend on the R&D process and whether the follower is in the market. Considering Cournot competition, we show that if the firms are in the market, the... Read More about R&D competition and the persistence of technology leadership.

Make and buy in a polluting industry (2020)
Journal Article
Iida, T., & Mukherjee, A. (2020). Make and buy in a polluting industry. Journal of Public Economic Theory, 22(6), 1852-1874. https://doi.org/10.1111/jpet.12440

The literature paid significant attention to analyze the rationale for the make-or-buy strategy of firms. However, a related empirically relevant strategy of make-and-buy did not get much attention. We show that the presence of tax/subsidy policies,... Read More about Make and buy in a polluting industry.

Does technology licensing matter for privatization? (2020)
Journal Article
Wang, L. F. S., Mukherjee, A., & Zeng, C. (2020). Does technology licensing matter for privatization?. Journal of Public Economic Theory, 22(5), 1462-1480. https://doi.org/10.1111/jpet.12431

In mixed oligopolies, technology licensing from a cost-efficient firm to a cost-inefficient firm has been widely observed. This paper examines the relationship between privatization and licensing (by public or private firms) with the consideration of... Read More about Does technology licensing matter for privatization?.

The implications of labour unions in the presence of a merger (2019)
Journal Article
Cao, J., Mukherjee, A., & Sinha, U. B. (2020). The implications of labour unions in the presence of a merger. Manchester School, 88(4), 575-583. https://doi.org/10.1111/manc.12306

It is usually believed that the presence of labour unions is detrimental for the consumers since it raises wage. We show that this view may not be true if we endogenise the impacts of labour unions on firms' corporate strategies such as merger and ac... Read More about The implications of labour unions in the presence of a merger.

Profit raising entry in a vertical structure (2019)
Journal Article
Mukherjee, A. (2019). Profit raising entry in a vertical structure. Economics Letters, 183, Article 108543. https://doi.org/10.1016/j.econlet.2019.108543

© 2019 Elsevier B.V. In contrast to the usual belief, we show that entry in the final goods market increases profits of the incumbent final goods producers if there is free entry in the input market and the final goods are sufficiently differentiated... Read More about Profit raising entry in a vertical structure.

Optimal Licensing Contract: The Implications of Preference Function (2019)
Journal Article
Mukherjee, A. (2020). Optimal Licensing Contract: The Implications of Preference Function. Arthaniti: Journal of Economic Theory and Practice, 19(1), 61-67. https://doi.org/10.1177/0976747919831803

We show the implications of preference function on the optimal licensing contract.As the market expansion effect gets stronger, it increases the possibility of a royalty only contract, thus reducing the co-existence of positive fixed-fee... Read More about Optimal Licensing Contract: The Implications of Preference Function.

Export cartel and consumer welfare (2018)
Journal Article
Mukherjee, A., & Sinha, U. B. (2019). Export cartel and consumer welfare. Review of International Economics, 27(1), 91-105. https://doi.org/10.1111/roie.12362

The purpose of this paper is to show that export cartels are not necessarily harmful for consumers in the importing countries. Using the strategic trade policy model of Brander and Spencer (1985a), we show that, contrary to the harmful effect, produc... Read More about Export cartel and consumer welfare.

Foreign direct investment, unionised labour markets and welfare (2018)
Journal Article
Cao, J., & Mukherjee, A. (2018). Foreign direct investment, unionised labour markets and welfare. International Review of Economics and Finance, 58, 330-339. https://doi.org/10.1016/j.iref.2018.04.004

Although empirical evidence on the relationship between labour union and foreign direct investment (FDI) is mixed, the theoretical literature mainly explains the negative relationship between labour union and FDI. We show that a multinational firm ma... Read More about Foreign direct investment, unionised labour markets and welfare.