Past Work 


Research in Natural Resource Economics

  1. Survey
  2. Oil Market
  3. Gold Market
  4. Speculative Attacks
    1. Attacks on Price Ceilings Supported by Bufferstock Sales
    2. Attacks on Cumulative Catch Quotas in Fisheries
    3. Attacks on Common Property Which Can be Privately Stored Once Extracted
    4. Attacks on Unallocated "Stock Quotas" on Imported Durables

Research in Industrial Organization

  1. Horizontal Mergers
  2. Cartels
  3. Price Discrimination

Contributions to Other Fields

  1. Biology
  2. Law
  3. Political Science




 
 
 


Research in Natural Resource Economics 




A. Survey

"The Economics of Natural Resource Extraction: A Primer for Development Economists," World Bank Research Observer, February 1995. 
 

B. Oil Market

"Exhaustible Resources and Industrial Structure: A Nash-Cournot Approach to the World Oil Market," Journal of Political Economy, October l976. 

"Staving Off the Backstop: Dynamic Limit Pricing with a Kinked Demand Curve," in R.W. Pindyck (ed.), Advances in the Economics of Energy and Resources, JAI Press, Greenwich, Conn., l979. 

Imperfect Competition in the International Energy Market: A Computerized Nash-Cournot Model, D.C. Heath and Company, Lexington, Mass., l98l. 

"Analytical Underpinnings of a Computerized World Oil Model," Operations Research, Spring l982. 

"The Length of Optimal Extraction Programs When Depletion Affects Extraction Costs" (with T. Lewis and M. Eswaran), Journal of Economic Theory, December l983. 

"A Self-Enforcing Multilateral Agreement Among Oil-Importing Countries," Contemporary Policy Issues, March l984. 

"A Misguided Energy Program: Reshaping OECD's Oil-Sharing Plan" (with R. Smith), New York Times, Sunday Forum, November 4, l984. Supporting editorial appeared in New York Times, November l6, l984. 

"Optimal Capacity Expansion by Foresighted Extractors and Producers" (with S. Switzer), in Problèmes de Ressources Naturelles et Théorie &Eacuteconomique edited by G. Gaudet and P. Lasserre, l986. 
 

C. Gold Market

"Market Anticipation of Government Policies and the Price of Gold" (with D. Henderson), Journal of Political Economy, August l978 -- anthologized in Bhattacharya and Constanides' Classics in Finance, l986. 

"Ending the Hidden Subsidy to South Africa," Newsday, July 10, 1987 (reprinted in the Ann Arbor News, August 5, 1987). 

Testimony of March 23, 1988 before the House Foreign Affairs Committee (Subcommittee on Africa) on the economic consequences of sales from official gold stockpiles in Proposed Economic Sanctions Against South Africa, Hearings and Markup before the Committee on Foreign Affairs, 1988 (GPO). 
 

D. Speculative Attacks

During the mid-1970's Dale Henderson and I discovered that speculative attacks (the sudden, instantaneous accumulation of inventories by previously inactive stockpilers) must occur in some circumstances in a competitive equilibrium with rational agents. The first published analysis appeared in our gold paper of 1978. 

Our paper launched a huge literature on speculative attacks in the context of financial markets (foreign exchange) with early contributions by Krugman, Flood, Garber, Obstfeld and others. For a recent of this burgeoning literature (which consists of more than 170 articles as of October, 1997), see "Perspectives on the Recent Currency Crisis Literature" by Robert Flood and Nancy Marion. 

My own work in this area (with various coauthors) explores the breadth of contexts where attacks arise: ceilings on exhaustible resources like gold, commodity agreements involving price bands, cumulative catch quotas in fisheries, common property which can be privately stored, etc. The rest of the attacks literature confines attention to the foreign exchange market. 
 

1. Attacks on Price Ceilings Supported by Bufferstock Sales

"Market Anticipation of Government Policies and the Price of Gold" (with D. Henderson), Journal of Political Economy, August l978 -- anthologized in Bhattacharya and Constanides' Classics in Finance, l986. 

"Recurrence of a Modified Random Walk and Its Application to an Economic Model" (with R. Wenocur), SIAM Journal of Applied Mathematics, February l98l. 

"The Vulnerability of Price Stabilization Programs to Speculative Attack," Journal of Political Economy, February l983. Reprinted in The Economics of Information, edited by David Levine and Steve Lippman, 1995. 
 

2. Attacks on Unallocated Cumulative Catch Quotas in Fisheries

"Private Storage of Common Property" (with G. Gaudet and M. Moreaux), JEEM, 2002.
 

3. Attacks on Common Property Which can be Privately Stored Once Extracted

"Private Storage of Common Property" (with G. Gaudet and M. Moreaux), JEEM, 2002.

4. Attacks on Unallocated "Stock Quotas" on Imported Durables

"The Effects of Periodic Quotas Limiting the Stock of Imported Durables" (with G. Gaudet), JET, 2003 


Research in Industrial Organization 




A. Horizontal Mergers

Since the first paper on "losses from mergers" ( coauthored with Switzer and Reynolds), a large micro literature has developed on the subject with contributions by Davidson, Deneckere, Farrell, Froeb, McAfee, Perry, Porter, Shapiro, Werden, Williams, and others. 

Interestingly, a macro literature on "losses from policy coordination" developed independently beginning with a contribution by Rogoff in 1985. For a nice expository survey of this literature, see chapter 3 of Monetary Policy in Interdependent Economies (MIT Press) by Canzoneri and Henderson. 

The idea for my first paper (co-authored with Switzer and Reynolds) came from running the simulation model of the world oil market and then observing that if Mexico joined OPEC the combined discounted profits would decline because of the non-OPEC expansion. Here are my four contributions to this area: 

"Losses from Merger: The Effects of an Exogenous Change in Industry Structure on Cournot-Nash Equilibrium" (with R. Reynolds and S. Switzer), Quarterly Journal of Economics, May l983--reprinted in Cournot Oligopoly: Characterization and Applications, edited by Andrew Daughety, Cambridge University Press, 1988. 

"Increasing the Profits of a Subset of Firms in Oligopoly Models with Strategic Substitutes" (with G. Gaudet), American Economic Review, June 1991. 

"Towards a Theory of Horizontal Mergers" (with G. Gaudet) chapter 7 in The New Industrial Economics edited by G. Norman and M. La Manna (Edward Elgar Publishers), 1992. 

"Mergers of Producers of Perfect Complements Competing in Price" (with G. Gaudet) Economic Letters, vol. 39, 1992. 
 

B. Cartels

"Exhaustible Resources and Industrial Structure: A Nash-Cournot Approach to the World Oil Market," Journal of Political Economy, October l976. 

"Staving Off the Backstop: Dynamic Limit Pricing with a Kinked Demand Curve," in R.W. Pindyck (ed.), Advances in the Economics of Energy and Resources, JAI Press, Greenwich, Conn., l979. 

Imperfect Competition in the International Energy Market: A Computerized Nash-Cournot Model, D.C. Heath and Company, Lexington, Mass., l98l. 

"Analytical Underpinnings of a Computerized World Oil Model," Operations Research, Spring l982. 

"Cartels that Vote: Agricultural Marketing Boards and Induced Voting Behavior" (with J. Cave), Public Regulation: New Perspectives on Institutions and Policies, edited by Elizabeth Bailey, and published by MIT Press, l987. 

"The Positive and Normative Consequences of Treble Damage Awards in Private Lawsuits for Price Fixing," Journal of Political Economy, December 1987. 

"Predicting Committee Behavior in Majority-Rule Experiments" (with E. Goodstein), Rand Journal, Summer 1990. 

"Increasing the Profits of a Subset of Firms in Oligopoly Models with Strategic Substitutes" (with G. Gaudet), American Economic Review, June 1991. 

"Cartel Quotas under Majority Rule" (with J. Cave), American Economic Review, March 1995. Reprinted in Agricultural Markets: Mechanisms, Failures and Regulations edited by David Martimort, North Holland (July, 1996).

 "Optimal Asymmetric Strategies in Research Joint Ventures" (with G. Shaffer), International Journal of Industrial Organization, (March,1998).

Cartels, a two-volume collection co-edited with Margaret Levenstein, 2007 Edward Elgar

C. Price Discrimination

"Cartels that Vote: Agricultural Marketing Boards and Induced Voting Behavior" (with J. Cave), Public Regulation: New Perspectives on Institutions and Policies, edited by Elizabeth Bailey, and published by MIT Press, l987. 

"When is Inducing Self-Selection Suboptimal for a Monopolist?" Quarterly Journal of Economics, May 1989. 

"Durable-Goods Monopoly with Discrete Demand" (with M. Bagnoli and J. Swierzbinski), Journal of Political Economy, December 1989. 

"Intertemporal Self-Selection with Multiple Buyers under Complete Information" (with M. Bagnoli and J. Swierzbinski), Economic Theory, vol 5, 1995. 
 
 
 
 


Contributions to Other Fields 




A. Biology

"Deducing Implications of Fitness Maximization When a Tradeoff Exists Among Alternative Currencies" (with K. Kalat and A. Wheatcroft), Behavioral Ecology, vol. 6, no. 4, winter 1995.

 

"The Economics of Mutualisms: Optimal Utilization of Mycorrhizal Mutualistic Partners by Plants"  (with Miroslav Kummel), Ecology, (Vol. 87, 4), April 2006 DOWNLOAD PDF

"Book Review of Creating Incentives for Pharmaceutical Research on Neglected Diseases by Michael Kremer and Rachel Glennerster, Economic Development and Cultural Change (forthcoming, 2007)" DOWNLOAD PDF

B. Law

"Game Theory and the Law: Is Game Theory Ready for Prime Time?" (coauthored with T. Sims), Michigan Law Review, May, 1996.  

C. Political Science

"Cartels that Vote: Agricultural Marketing Boards and Induced Voting Behavior" (with J. Cave), Public Regulation: New Perspectives on Institutions and Policies, edited by Elizabeth Bailey, and published by MIT Press, l987. 

"Predicting Committee Behavior in Majority-Rule Experiments" (with E. Goodstein), Rand Journal, Summer 1990. 

"Cartel Quotas under Majority Rule" (with J. Cave), American Economic Review, March 1995. Reprinted in Agricultural Markets: Mechanisms, Failures and Regulations edited by David Martimort, North Holland (July, 1996). 
 


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