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Welfare reducing vertical integration in a bilateral monopoly under Nash bargaining (2024)
Journal Article
Mukherjee, A., & Sinha, U. B. (2024). Welfare reducing vertical integration in a bilateral monopoly under Nash bargaining. Journal of Public Economic Theory, 26(3), Article e12701. https://doi.org/10.1111/jpet.12701

We consider a bilateral monopoly where a linear input price is determined by Nash bargaining. We show with an increasing marginal cost of input production that vertical integration reduces consumer surplus and welfare compared to bilateral monopoly i... Read More about Welfare reducing vertical integration in a bilateral monopoly under Nash bargaining.

Strategic trade policy in a Cournot oligopoly with convex cost (2024)
Journal Article
Mukherjee, A., & Sinha, U. B. (in press). Strategic trade policy in a Cournot oligopoly with convex cost. Foreign Trade Review,

We provide a simple reason for export tax in a third-country model of strategic trade policy. We show that the optimal policy under Cournot competition could be export tax in the presence of convex production costs. This happens whether or not the im... Read More about Strategic trade policy in a Cournot oligopoly with convex cost.

Foreign direct investment and technology licensing in a polluting industry (2024)
Journal Article
Cao, J., & Mukherjee, A. (in press). Foreign direct investment and technology licensing in a polluting industry. Environmental and Resource Economics,

We consider a firm's incentive for foreign direct investment (FDI) and international technology licensing in a polluting industry. We explain the rationale and the welfare implications of complementarity between FDI and licensing, i.e., the firm's st... Read More about Foreign direct investment and technology licensing in a polluting industry.

Complementary inputs, outsourcing and vertical integration: Price versus quantity competition (2024)
Journal Article
Mukherjee, A., & Senalp, B. (2024). Complementary inputs, outsourcing and vertical integration: Price versus quantity competition. Manchester School, https://doi.org/10.1111/manc.12480

We compare the effects of price and quantity competition in an industry with complementary inputs, outsourcing and a vertically integrated firm where vertical integration occurs between a final goods producer and a subset of input suppliers. The prof... Read More about Complementary inputs, outsourcing and vertical integration: Price versus quantity competition.

Pro-competitive merger under R&D revisited (2024)
Journal Article
Mukherjee, A., & Ray, A. (2024). Pro-competitive merger under R&D revisited. Economics Letters, 239, Article 111727. https://doi.org/10.1016/j.econlet.2024.111727

Mergers may increase process innovation and become pro-competitive compared to non-cooperation if firms cannot observe rivals' R&D investments. Hence, the antitrust authorities may not need to be overly concerned about mergers when R&D investments ar... Read More about Pro-competitive merger under R&D revisited.

Bertrand-Cournot profit reversal in a vertical structure with cross ownership (2024)
Journal Article
Mukherjee, A., Wang, L. F., & Sun, J. (2024). Bertrand-Cournot profit reversal in a vertical structure with cross ownership. Economics Letters, 238, Article 111681. https://doi.org/10.1016/j.econlet.2024.111681

We provide a new reason for Bertrand-Cournot profit reversal. In a two-tier industry with a profit-maximising input supplier and symmetric final good producers, we show that the profit reversal occurs under passive cross ownership among firms.

Downstream cross-holdings and upstream R&D: A comment (2024)
Journal Article
Jin, Y., Mukherjee, A., & Zeng, C. (2024). Downstream cross-holdings and upstream R&D: A comment. Journal of Industrial Economics, https://doi.org/10.1111/joie.12391

According to Hu et al. [Journal of Industrial Economics, 70(3), pp. 775–789], downstream cross-holdings are permissible based on the social welfare standard if the investment technology in the upstream sector is highly inefficient. However, the concl... Read More about Downstream cross-holdings and upstream R&D: A comment.

Cross ownership and merger under technology adoption (2024)
Journal Article
Mukherjee, A. (2024). Cross ownership and merger under technology adoption. Indian Growth and Development Review, https://doi.org/10.1108/IGDR-10-2023-0162

Purpose: This paper aims to consider the effects of a merger on technology adoption and welfare in the presence of passive cross ownership. Merger increases investments in process technology and may increase welfare. The results are important for ant... Read More about Cross ownership and merger under technology adoption.

Losses from horizontal merger and collusion (2024)
Journal Article
Beladi, H., & Mukherjee, A. (2024). Losses from horizontal merger and collusion. Journal of Economics, 142, 277-289. https://doi.org/10.1007/s00712-024-00857-y

We show that the implications of a merger on collusion sustainability change significantly from the extant literature if merger is not profitable in the punishment subgame where firms play non-cooperative Cournot-Nash game. Merger either does not aff... Read More about Losses from horizontal merger and collusion.

Privatization and innovation in a vertical structure (2024)
Journal Article
Wu, X., Mukherjee, A., & Zeng, C. (2024). Privatization and innovation in a vertical structure. China Economic Review, 84, Article 102139. https://doi.org/10.1016/j.chieco.2024.102139

We investigate how upstream privatization affects downstream R&D investments and social welfare in a vertically-related industry with an upstream monopolistic firm and two downstream firms. One of the downstream firms can undertake R&D investments to... Read More about Privatization and innovation in a vertical structure.

Licensing option to reduce rent extraction by the input supplier (2024)
Journal Article
Kao, K., & Mukherjee, A. (2024). Licensing option to reduce rent extraction by the input supplier. Journal of Public Economic Theory, 26(1), Article e12682. https://doi.org/10.1111/jpet.12682

It is well known that if the final goods producers adopt new technologies, the input suppliers with market power can extract more rent from the final goods producers by increasing the input prices. Higher rent extraction by the input supplier neither... Read More about Licensing option to reduce rent extraction by the input supplier.

Bertrand-Cournot profit reversal under non-commitment process innovation (2024)
Journal Article
Zhang, Q., Wang, L. F., & Mukherjee, A. (2024). Bertrand-Cournot profit reversal under non-commitment process innovation. Manchester School, 92(4), 371-382. https://doi.org/10.1111/manc.12471

We provide a new reason for Bertrand-Cournot profit reversal. In a symmetric oligopoly, we show that firms get higher profits under Bertrand competition compared to Cournot competition under non-commitment process innovation if the products are suffi... Read More about Bertrand-Cournot profit reversal under non-commitment process innovation.

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, 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.

Welfare reducing licensing by an outside innovator (2024)
Journal Article
Mukherjee, A., & Sinha, U. B. (2024). Welfare reducing licensing by an outside innovator. Economic Theory Bulletin, https://doi.org/10.1007/s40505-023-00259-1

It is commonly believed that licensing of cost reducing technology increases welfare. We show that technology licensing by an outside innovator may reduce welfare when the technology is not useful for all final goods producers. Technology licensing r... Read More about Welfare reducing licensing by an outside innovator.

Strategic trade policy in a vertical structure with cross ownership (2023)
Book Chapter
Mukherjee, A., & Sinha, U. B. (in press). Strategic trade policy in a vertical structure with cross ownership. In S. Marjit, & B. Mandal (Eds.), International Trade, Resource Mobility and Adjustments in a Changing World: Essays in Memory of Ronald W. Jones. Springer

We consider an economy where the final goods producers use a key input supplied by a foreign monopolist. We show how different types of passive cross ownership affects export tax/subsidy policies in the final goods industry. In this respect, we show... Read More about Strategic trade policy in a vertical structure with cross ownership.

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., & 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.

Bilateral Delegation, Wage Bargaining and Innovation (2023)
Journal Article
Mukherjee, A., & Saha, B. (in press). Bilateral Delegation, Wage Bargaining and Innovation. Journal of Institutional and Theoretical Economics,

A firm undertakes workers’ productivity improving R&D before negotiating wage with the union, where negotiation can take place between their incentivised delegates. Under bilateral delegation profit, R&D and productivity-wage gap all increase, whilst... Read More about Bilateral Delegation, Wage Bargaining and Innovation.

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., 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.

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.

Labour unionisation structure and product innovation (2017)
Journal Article
Basak, D., & Mukherjee, A. (2018). Labour unionisation structure and product innovation. International Review of Economics and Finance, 55, https://doi.org/10.1016/j.iref.2017.12.013

This paper contributes to the recently growing literature by examining the effects of different labour unionisation structures on innovation. Using a Cournot duopoly set up, we investigate the effects of centralised and decentralised labour unions on... Read More about Labour unionisation structure and product innovation.

Firm-asymmetry and strategic outsourcing (2017)
Journal Article
Cao, J., Mukherjee, A., & Sinha, U. B. (in press). Firm-asymmetry and strategic outsourcing. International Review of Economics and Finance, 53, https://doi.org/10.1016/j.iref.2017.10.008

In contrast to the conventional wisdom, we show that a final goods producer may outsource input production to an outside supplier even if the final goods producer possesses a superior input-production technology compared to the outside supplier. Such... Read More about Firm-asymmetry and strategic outsourcing.

Firm-productivity and export under non-constant marginal costs (2017)
Journal Article
Mukherjee, A. (2017). Firm-productivity and export under non-constant marginal costs. Economics Bulletin, 37(2),

Recent theoretical research shows that exporters are more productive than non- exporters. We show that this result holds almost trivially for the case of a constant marginal cost of production, as mainly assumed in the literature, but it may not hold... Read More about Firm-productivity and export under non-constant marginal costs.

Union bargaining power, subcontracting and innovation (2017)
Journal Article
Beladi, H., & Mukherjee, A. (2017). Union bargaining power, subcontracting and innovation. Journal of Economic Behavior and Organization, 137, 90-104. https://doi.org/10.1016/j.jebo.2017.02.013

We show that if a firm can subcontract production to an informal sector, an increase in union power may either increase or decrease innovation. An increase in union power makes the firm worse off irrespective of its effect on innovation. However, in... Read More about Union bargaining power, subcontracting and innovation.

Domestic patenting systems and foreign licensing choices (2017)
Journal Article
Tsai, Y., & Mukherjee, A. (in press). Domestic patenting systems and foreign licensing choices. Journal of Economics, https://doi.org/10.1007/s00712-017-0523-y

This paper examines a foreign technology holder’s licensing choices between royalty and fixed-fee scheme. We emphasize that foreign licensor chooses the quality of licensed technology when the licensee country does not implement perfect intellectual... Read More about Domestic patenting systems and foreign licensing choices.

Price vs. quantity competition in a vertically related market revisited (2017)
Journal Article
Basak, D., & Mukherjee, A. (2017). Price vs. quantity competition in a vertically related market revisited. Economics Letters, 153, https://doi.org/10.1016/j.econlet.2017.01.021

In a recent paper, Alipranti et al. (2014, Price vs. quantity competition in a vertically related market, Economics Letters, 124: 122-126) show that, in a vertically related market, Cournot competition yields higher social welfare than Bertrand compe... Read More about Price vs. quantity competition in a vertically related market revisited.

Labor unionization structure, innovation and welfare (2016)
Journal Article
Tien-Der, H., & Mukherjee, A. (2017). Labor unionization structure, innovation and welfare. Journal of Institutional and Theoretical Economics, 173(2), https://doi.org/10.1628/093245616X14785139493983

We show the effects of cooperation among the labour unions with complementary workers on innovation, consumer surplus and welfare. Although cooperation among the unions reduces wage, it may either increase or decrease the firm’s incentive for innovat... Read More about Labor unionization structure, innovation and welfare.

Market power of the input supplier, technology transfer and consumer welfare (2016)
Journal Article
Cao, J., & Mukherjee, A. (2017). Market power of the input supplier, technology transfer and consumer welfare. Manchester School, 85(4), 430-449. https://doi.org/10.1111/manc.12152

It is believed that market power of the input supplier, charging a linear price, is detrimental for the consumers since it creates the double marginalisation problem. We show that this view may not be true if the final goods producers can adopt strat... Read More about Market power of the input supplier, technology transfer and consumer welfare.

Product market cooperation, entry and consumer welfare (2016)
Journal Article
Liu, C., Mukherjee, A., & Wang, L. F. (2016). Product market cooperation, entry and consumer welfare. International Review of Economics and Finance, 44, 277-280. https://doi.org/10.1016/j.iref.2016.02.017

It is usually believed that product-market cooperation among the competing firms is detrimental for the consumers. We show that this view may not be true in an endogenously determined market structure. Product-market cooperation may benefit the consu... Read More about Product market cooperation, entry and consumer welfare.

Tariffs, technology licensing and adoption (2016)
Journal Article
Chen, H.-L., Hwang, H., Mukherjee, A., & Shih, P.-C. (2016). Tariffs, technology licensing and adoption. International Review of Economics and Finance, 43, 234-240. https://doi.org/10.1016/j.iref.2016.02.012

This paper develops a two-country Cournot duopoly model to investigate the implications of international technology licensing. It is shown that if the tariff imposed by the domestic country is high, it is optimal for the foreign firm to adopt an infe... Read More about Tariffs, technology licensing and adoption.

Competition, foreign direct investment and welfare (2015)
Journal Article
Mukherjee, A., & Sinha, U. B. (2016). Competition, foreign direct investment and welfare. Economics Letters, 139, https://doi.org/10.1016/j.econlet.2015.12.013

In contrast to the usual belief, we show that a lower product-market competition may make the consumers better off and increase welfare when foreign firms strategically choose between export and foreign direct investment (FDI). A lower product-market... Read More about Competition, foreign direct investment and welfare.

Social efficiency of entry in a vertically related industry (2015)
Journal Article
Basak, D., & Mukherjee, A. (2016). Social efficiency of entry in a vertically related industry. Economics Letters, 139, https://doi.org/10.1016/j.econlet.2015.12.003

We provide a new perspective to the literature on social desirability of entry by showing that, if the input supplier has market power, social desirability of entry of the final goods producers depends on returns to scale. Entry in the final goods ma... Read More about Social efficiency of entry in a vertically related industry.

Labour Market Integration and Innovation: The Implications on Consumers (2015)
Journal Article
Chowdhury, M., & Mukherjee, A. (2016). Labour Market Integration and Innovation: The Implications on Consumers. Manchester School, 84(6), 771-794. https://doi.org/10.1111/manc.12132

We show the effects of labour market integration on consumers. Labour market integration allows the firms in the labour‐recipient countries to hire skilled and unskilled workers at lower wages. If labour market integration creates the possibility of... Read More about Labour Market Integration and Innovation: The Implications on Consumers.

Host market competition, foreign FDI and domestic welfare (2015)
Journal Article
Tsai, Y., Mukherjee, A., & Chen, J.-R. (2016). Host market competition, foreign FDI and domestic welfare. International Review of Economics and Finance, 42, 13-22. https://doi.org/10.1016/j.iref.2015.10.016

This paper studies the impact on domestic welfare and a foreign firm's entry mode of a greater host market competition. We find that a stronger domestic competition may attract or deter FDI. We also show that higher domestic competition can raise dom... Read More about Host market competition, foreign FDI and domestic welfare.

Endogenous Market Structure, Trade Cost Reduction, and Welfare (2015)
Journal Article
Marjit, S., & Mukherjee, A. (2015). Endogenous Market Structure, Trade Cost Reduction, and Welfare. Journal of Institutional and Theoretical Economics, 171(3), 493-511. https://doi.org/10.1628/093245615x14322754804672

We show the long-run effects of a trade cost reduction in an oligopolistic industry. If the labor markets are competitive and the products are homogeneous, a lower transportation cost affects neither consumer surplus nor welfare of the importing coun... Read More about Endogenous Market Structure, Trade Cost Reduction, and Welfare.

Patent protection, innovation and technology licensing (2014)
Journal Article
Wang, L. F., & Mukherjee, A. (2014). Patent protection, innovation and technology licensing. Australian Economic Papers, 53(3-4), 245-254. https://doi.org/10.1111/1467-8454.12030

We show that the common wisdom suggesting higher investment in innovation under a stronger patent protection may not be true if the innovator can license its technology ex‐post innovation. If the initial cost of production is high and the slope of th... Read More about Patent protection, innovation and technology licensing.

Does two-part tariff licensing agreement enhance both welfare and profit? (2014)
Journal Article
Mukherjee, A., & Tsai, Y. (2015). Does two-part tariff licensing agreement enhance both welfare and profit?. Journal of Economics, 116(1), 63-76. https://doi.org/10.1007/s00712-014-0421-5

It is general belief that firm profit is higher under two-part tariff licensing, while social welfare is greater under fixed-fee licensing. We show that this conclusion need not hold when technology transfer is costly and, in particular, when the qua... Read More about Does two-part tariff licensing agreement enhance both welfare and profit?.

Privatization in the presence of foreign competition and strategic policies (2014)
Journal Article
Dijkstra, B., Mathew, A., & Mukherjee, A. (2014). Privatization in the presence of foreign competition and strategic policies. Journal of Economics, 114(3), https://doi.org/10.1007/s00712-014-0407-3

Recent evidence shows that developing and transition economies are increasingly privatizing their public firms and also experiencing rapid growth of inward foreign direct investment (FDI). In an international mixed oligopoly with strategic tax/subsid... Read More about Privatization in the presence of foreign competition and strategic policies.

Managerial Delegation, Cost Asymmetry and Social Efficiency of Entry (2013)
Journal Article
Mukherjee, A., & Tsai, Y. (2014). Managerial Delegation, Cost Asymmetry and Social Efficiency of Entry. Economic Record, 90(288), 90-97. https://doi.org/10.1111/1475-4932.12079

This article examines the welfare implications of entry in oligopolistic markets with separation of management from ownership. In the presence of strategic managerial delegation and cost asymmetry, entry is socially insufficient unless the degree of... Read More about Managerial Delegation, Cost Asymmetry and Social Efficiency of Entry.

Patent protection under endogenous product differentiation (2013)
Journal Article
Mukherjee, A. (2014). Patent protection under endogenous product differentiation. Asia-Pacific Journal of Accounting and Economics, 21(1), 78-93. https://doi.org/10.1080/16081625.2014.858389

It is generally believed that, if weak patent protection does not affect innovation, it makes consumers and society better off compared to strong patent protection by increasing the intensity of competition. We show that this conclusion may not be va... Read More about Patent protection under endogenous product differentiation.

Entry, profit and welfare under asymmetric R&D costs: entry, profit and welfare (2013)
Journal Article
Mukherjee, A., & Ray, A. (2014). Entry, profit and welfare under asymmetric R&D costs: entry, profit and welfare. Manchester School, 82(3), 284-295. https://doi.org/10.1111/manc.12015

We show the effects of entry of a new firm on the profits and welfare when the firms share the same initial cost of production but differ in terms of the costs of undertaking R&D. Considering a Cournot oligopoly model with innovation and linear deman... Read More about Entry, profit and welfare under asymmetric R&D costs: entry, profit and welfare.

Can cost asymmetry be a rationale for privatisation? (2013)
Journal Article
Mukherjee, A., & Sinha, U. B. (2014). Can cost asymmetry be a rationale for privatisation?. International Review of Economics and Finance, 29, 497-503. https://doi.org/10.1016/j.iref.2013.07.010

Cost asymmetries between the public and the private firms create a rationale for privatising the public firms. We show that this argument is restrictive, since it does not allow for other ways of reducing production inefficiency, which creates the mo... Read More about Can cost asymmetry be a rationale for privatisation?.

A note on the adverse effect of competition on consumers: adverse effect of competition on consumers (2013)
Journal Article
Dinda, S., & Mukherjee, A. (2014). A note on the adverse effect of competition on consumers: adverse effect of competition on consumers. Journal of Public Economic Theory, 16(1), 157-163. https://doi.org/10.1111/jpet.12044

It is usually believed that higher competition, implying more active firms, benefits consumers. We show that this may not be the case in an industry with asymmetric cost firms. A rise in the number of more cost‐inefficient firms makes the consumers w... Read More about A note on the adverse effect of competition on consumers: adverse effect of competition on consumers.

R&D cooperation with entry (2012)
Journal Article
Bandyopadhyay, S., & Mukherjee, A. (2014). R&D cooperation with entry. Manchester School, 82(1), 52-70. https://doi.org/10.1111/j.1467-9957.2012.02336.x

We show the effects of entry by a non‐innovating firm on the innovating firms' incentive for undertaking cooperative R&D, highlighting the implications of knowledge spillover. Entry by a non‐innovating firm may either increase or decrease the incenti... Read More about R&D cooperation with entry.