Maria José Gil-Moltó

R&D Subsidies, Spillovers, and Privatization in Mixed Markets

We examine the use of subsidies to research and development (RD however, it does not lead to the equalization of per firm output and therefore to an efficient distribution of production costs. We also find that privatization of the public firm reduces R&D activity and welfare in the duopoly market. This result stands even when optimal R&D subsidies are provided.

Entry and Exit by European Low Cost and Traditional Carriers

The authors analyse the entry and exit activity in the UK–Europe airline markets and study the differential traits of three main airlines (British Airways, EasyJet and RyanAir) during1997–2004. They find that entry and exit are more likely in large markets and in markets with a high number of incumbents. Already operating in the city-pair enhances the probability that the same firm will enter another route in the same city-pair. The existence of charter flights generates both entries and exits, while high seasonality generally discourages entry. Also, the level of service quality provided by the incumbents matters.

Endogenous Market Structure, Occupational Choice, and Growth Cycles

We model an industry that supplies intermediate goods in a growing economy. Agents can choose whether to provide labour or to become firm owners and compete in the industry. The idea that entry is determined through occupational choice has major implications for the economy’s intrinsic dynamics. Particularly, the results show that economic dynamics are governed by endogenous volatility in the determination of both the number of industry entrants and in the growth rate of output. Consequently, we argue that occupational choice and the structural characteristics of the endogenous market structure can act as both the impulse source and the propagation mechanism of economic fluctuations.

Pollution and Environmentalists' Participation in Emissions Trading Systems

In this paper, we show that the participation by an environmental group in a permit market does not necessarily result in more investment in abatement or even less pollution. There is a U-shaped relationship between the emission per unit of output and the extra weight given by the environmental group to the reduction of emissions. For high values of this weight, firms invest less in abatement but also produce less. For lower values, firms invest more in abatement but also produce more, which may result in higher emissions levels.

Economic aspects of the Microsoft case: networks, interoperability and competition

In this paper, we discuss the main economic aspects of the European Microsoft case; in particular, Microsoft’s refusal to supply the necessary information to make the competitors’ work group server systems interoperable with Windows Operating System. The case can be seen as an example of competition between networks. We review the relevant economics literature with the objective of understanding the motivations behind Microsoft’s strategies.