Topic Markets

Meeting of the Committee for Industrial Economics

2023 Annual Meeting of the Committee for Industrial Economics of the Verein für Socialpolitik

Competition and VAT Pass-Through

We examine how competition affects VAT pass-through in isolated oligopolistic markets as defined by the Greek islands. Using daily gasoline prices and a difference-in-differences methodology, we study how changes in VAT rates are passed through to consumers in islands with different number of retailers. We show that pass-through increases with competition, going from 50% in monopoly to around 80%...

Are M&As Spurring or Stifling Innovation? - Evidence from Antidiabetic Drug Development

The innovation impact of acquisitions of small targets with products close to launch by large product market incumbents is currently debated, weighing whether incumbents might preemptively terminate or “kill” the innovative projects of these targets. This paper provides empirical evidence on which M&A deals spur and which stifle innovation. To this end, we not only look at the product market...

The 14th Berlin IO Day

The Berlin IO Day is a one-day workshop sponsored by the Berlin Centre for Consumer Policies (BCCP) and supported by the Berlin's leading academic institutions, including DIW Berlin, ESMT Berlin, Freie Universität Berlin, Humboldt-Universität zu Berlin, and Technische Universität Berlin. The aim is to create an international forum for high quality research in Industrial Organization in the heart...

The Housing Market in Public and Political Debate - a Text Analysis

What Do Insurers Do Differently Than One Another? Managed Competition and Value Added

Study on the impact of State aid rules for banks in difficulty

The study will provide a quantitative and qualitative assessment of the impact of the State aid rules for banks, which will serve as evidence for the evaluation of the State aid rules applicable to banks in difficulty since their entry into force in end-2008.

The Impact of the Tax Reduction on Fuel Prices in Germany: A Synthetic Difference-in-Differences Approach

We analyse the impact of the temporary tax reduction on diesel and gasoline prices from June to the end of August 2022 in Germany. By implementing a synthetic difference-in-differences approach with different baskets of European countries, we find a significant reduction in prices by 33.8–34.4 cents per litre for gasoline and 12.2–14.6 cents per litre for diesel. These results are robust to variations ...

Local Energy Markets

In current power markets, the bulk of electricity is sold wholesale and transported to consumers via long-distance transmission lines. Recently, decentralized local energy markets have evolved, often as isolated networks based on solar generation. We analyze strategic pricing, investment, and welfare in local energy markets. We show that local energy markets yield competitive equilibrium prices and ...

Government Ownership and Competition: Evidence from the European Airline Industry following the COVID-19-Pandemic

This paper empirically analyses the impact of government ownership on competition. The COVID-19 pandemic and subsequent governmental equity interventions in the European airline industry provides for a particularly ideal setting to investigate this topic, and this for several reasons. First, airline markets and competition therein are well-defined and well-understood. Second, European countries...