Partial equity ownership and knowledge transfer: An economic analysis of strategic alliances. Since 1997, 5462 cases of equity strategic alliances have been identified within Australia. In 2003, the ACCC rejected a proposal by Qantas and Air New Zealand to enter into such an alliance on the grounds that it would be highly anti-competitive. Under what conditions should the Government allow or prevent the formation of equity strategic alliances? Under what circumstances can such alliances benefit ....Partial equity ownership and knowledge transfer: An economic analysis of strategic alliances. Since 1997, 5462 cases of equity strategic alliances have been identified within Australia. In 2003, the ACCC rejected a proposal by Qantas and Air New Zealand to enter into such an alliance on the grounds that it would be highly anti-competitive. Under what conditions should the Government allow or prevent the formation of equity strategic alliances? Under what circumstances can such alliances benefit consumers and society? This project addresses these questions by systematically exploring the link between equity ownership and knowledge transfer. It will contribute to the effective operation of the Australian economy by proposing comprehensive guidelines for antitrust agencies to analyse welfare consequences of equity strategic alliances.Read moreRead less
Innovation, Competition and Economic Performance: Understanding the Dynamics of Industry Development. An improved understanding of the impact of innovation on competition and economic performance will inform the design of public policy in terms of industry assistance, research and development support, competition policy and regulatory activity. This will help ensure that the billions of dollars of private and public expenditure devoted to innovative activities and industry development has the gr ....Innovation, Competition and Economic Performance: Understanding the Dynamics of Industry Development. An improved understanding of the impact of innovation on competition and economic performance will inform the design of public policy in terms of industry assistance, research and development support, competition policy and regulatory activity. This will help ensure that the billions of dollars of private and public expenditure devoted to innovative activities and industry development has the greatest possible impact in terms of improved products, lower prices and the enhanced competitiveness of Australian businesses.Read moreRead less
Optimal Policy Design with Entry: A Model of Aggregative Oligopoly Games. This project aims to develop a theory of endogenous market structures using aggregative oligopoly games to engage issues in competition, trade and innovation policy. Effective and innovative policy design is crucial for economic growth and productivity. Policy analysis with endogenous market structures is in need of better tools. The toolkit of aggregative games, in which each player’s profit can be written as a function o ....Optimal Policy Design with Entry: A Model of Aggregative Oligopoly Games. This project aims to develop a theory of endogenous market structures using aggregative oligopoly games to engage issues in competition, trade and innovation policy. Effective and innovative policy design is crucial for economic growth and productivity. Policy analysis with endogenous market structures is in need of better tools. The toolkit of aggregative games, in which each player’s profit can be written as a function of own action and an aggregate variable, would greatly simplify the analysis of oligopoly interaction. This would lead to a tractable but general welfare analysis yielding new results. The framework is designed to allow us to examine complex policy questions in a simplified way, accommodating models with heterogeneous players and entry, and generalising models with different types of competition and demand specification.Read moreRead less
General market equilibrium analysis of securitisable assets in the presence of private information, when contracts are incomplete. Three key markets (among others) were involved in the gestation of the worst financial crisis seen since the great depression: the market for mortgages and the market for securities, backed by mortgages and housing market. The focus of this project is to examine financial fragility in such markets, theoretically applying outcomes to Australian policy.
Innovation incentives in the Internet economy: a multi-sided market approach. The internet is a fundamental infrastructure for economic growth and prosperity in the global economy. Maintaining competition and promoting innovation in the internet industry thus is of paramount importance. The aim of this project is to push the frontier of research and advance public policy regarding the internet and, more generally, towards the ICT industry. The project will develop comprehensive and innovative e ....Innovation incentives in the Internet economy: a multi-sided market approach. The internet is a fundamental infrastructure for economic growth and prosperity in the global economy. Maintaining competition and promoting innovation in the internet industry thus is of paramount importance. The aim of this project is to push the frontier of research and advance public policy regarding the internet and, more generally, towards the ICT industry. The project will develop comprehensive and innovative economic models to understand better the innovation process in the internet industry. This will enable formulation of regulatory policies based on rigorous and evidence-based analysis to create an environment that would help the Australian economy sustain global competitiveness in the innovation-driven internet industry.Read moreRead less
Bargaining and the price of new pharmaceuticals in Australia: An empirical analysis. The proposed research will consider whether there is a trade-off between price and access and will identify features of the regulatory framework that contribute to delays in securing access to drugs for diseases with no alternative therapy. It will provide decision makers with the necessary information to negotiate the lowest achievable price for drugs, freeing up resources for use elsewhere in the health sector ....Bargaining and the price of new pharmaceuticals in Australia: An empirical analysis. The proposed research will consider whether there is a trade-off between price and access and will identify features of the regulatory framework that contribute to delays in securing access to drugs for diseases with no alternative therapy. It will provide decision makers with the necessary information to negotiate the lowest achievable price for drugs, freeing up resources for use elsewhere in the health sector or slowing the growth in healthcare expenditure.Read moreRead less
Technical Change, Productivity Growth and Pricing in Australian Manufacturing. We examine productivity growth and price competitiveness of Australian manufacturing by estimating an econometric model for aggregate manufacturing and as well as individual industries. The parameter estimates from the econometric model are used to identify the separate impacts on productivity growth and price changes due to technical change, economies of scale, capacity utilization and market power. We then estimate ....Technical Change, Productivity Growth and Pricing in Australian Manufacturing. We examine productivity growth and price competitiveness of Australian manufacturing by estimating an econometric model for aggregate manufacturing and as well as individual industries. The parameter estimates from the econometric model are used to identify the separate impacts on productivity growth and price changes due to technical change, economies of scale, capacity utilization and market power. We then estimate how each separate impact is affected by industry characteristics, including seller concentration and investment in physical, human and intellectual capital, and policy related variables, such as tariff rates and degree of unionisation of the labour force. This will provide an important contribution of the knowledge of how the economic environment and government policies impact on productivity growth and the international competitiveness of Australian manufacturing.Read moreRead less
The Consistency of Price Regulation of Infrastructure Businesses across Australian Jurisdictions. The spread of regulation across the majority of the economy necessitates that regulatory policy should be consistent across jurisdictions and industries. This project would offer policy and regulatory institutions quantitative analysis of the consistency of regulatory decisions across Australia. This research would develop a new database that would maintain and supply details on regulatory decision ....The Consistency of Price Regulation of Infrastructure Businesses across Australian Jurisdictions. The spread of regulation across the majority of the economy necessitates that regulatory policy should be consistent across jurisdictions and industries. This project would offer policy and regulatory institutions quantitative analysis of the consistency of regulatory decisions across Australia. This research would develop a new database that would maintain and supply details on regulatory decisions across jurisdictions and industries. This project would enable the new Australian Centre of Regulatory Economics (ACORE) to supply independent database and quantitative analysis from an open, fully documented, scholarly environment to Australia's policy and regulatory agencies and its regulated firms.Read moreRead less
Economy-wide consequences of regulation and privatisation policy regimes. The spread of regulation across the majority of the economy necessitates that regulatory policy and approaches account for affects on GDP, employment, innovation and the growth rate. This project will offer policy institutions, including the ACCC, the Productivity Commission and the Treasury, an analysis of these effects and develop new computer models suited to future use to explore economy-wide implications. This need ....Economy-wide consequences of regulation and privatisation policy regimes. The spread of regulation across the majority of the economy necessitates that regulatory policy and approaches account for affects on GDP, employment, innovation and the growth rate. This project will offer policy institutions, including the ACCC, the Productivity Commission and the Treasury, an analysis of these effects and develop new computer models suited to future use to explore economy-wide implications. This need arises even in sectoral regulatory agencies, however, most particularly where service industries, such as telecommunications, are dominated by one or a few firms whose performance has major effects on the costs and innovativeness of firms in other sectors.Read moreRead less
Disclosure in patents, an economic analysis using computational linguistics. This project aims to analyse the disclosure of patents. To achieve economic growth, the patent system aims to provide incentives for research and development as well as to ensure knowledge is accessible as widely as possible. This project will explore and demonstrate the usefulness of computational linguistics in the economic analysis of disclosure in patents. In particular, the project will look at the role of readabi ....Disclosure in patents, an economic analysis using computational linguistics. This project aims to analyse the disclosure of patents. To achieve economic growth, the patent system aims to provide incentives for research and development as well as to ensure knowledge is accessible as widely as possible. This project will explore and demonstrate the usefulness of computational linguistics in the economic analysis of disclosure in patents. In particular, the project will look at the role of readability in the patent application and examination process. This will provide a strong potential to inform and improve patent examination processes and patent policy. Expected outcomes will enable society to achieve greater use of the knowledge embedded in the patent system, thereby contributing to higher economic growth.Read moreRead less