Wouter Vergote

Wouter Vergote
Columbia University | CU · Department of Economics

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24
Publications
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324
Citations

Publications

Publications (24)
Article
This paper analyzes the role of retaliation in trade agreements. It shows that, in the presence of private information, retaliation can always be used to increase the welfare derived from such agreements by the participating governments. In particular, it is shown that retaliation is a necessary feature of any efficient equilibrium. We argue that r...
Article
In a setting of R&D co-opetition we study, by using an all-pay auction approach, how collaboration affects strategic decisions during a patent contest, and how the latter influences the possible collaboration network structures the firms can hope to form. The all pay auction approach allows us to 1) endogenize both network formation and R&D intensi...
Article
Full-text available
A vast and often confusing economics literature relates competition to investment in innovation. Following Joseph Schumpeter, one view is that monopoly and large scale promote investment in research and development by allowing a firm to capture a larger fraction of its benefits and by providing a more stable platform for a firm to invest in R&D. Ot...
Article
Full-text available
Two duopolists compete in price on the market for a homogeneous product. They can use a 'profiling technology' that allows them to identify the willingness-to-pay of their consumers with some probability. If both firms have profiling technologies of the exact same precision, or if one firm cannot use any profiling technology, then the Bertrand para...
Article
Full-text available
This article investigates how firms compete when they have the ability to set a personalized price to those consumers they can profile and a uniform price to those consumers they cannot profile; how this affects the incentives to supply data analytics to firms; and what, if any, policy recommendations can be provided.
Article
In this article, we develop some of the economics of the intricate relationship between the demand and the supply of personalized data. We first focus on one heavily debated use of personal data: differential pricing (price discrimination). This allows us to highlight the role played by privacy protection, the impact on consumer welfare and the inc...
Article
This paper studies the stability of a status quo matching by considering the set of matching locations as a primitive of a one-to-one matching problem, alongside the agents and their preferences. As such we generalize the approach of Morrill (J Econ Theory 145:1739–1756, 2010) who was the first to study matching problems with location restrictions....
Article
Full-text available
Under the WTO Antidumping Agreement (ADA) non-disclosure clause, the investigating AD authority cannot disclose the confidential information it obtains. This paper analyzes how non-disclosure of confidential information leads the government to use the magnitude of the AD duty to signal this information, in casu the costs of the firm under investiga...
Article
We propose a model of network formation in a Tullock contest. Agents first form their partnerships and then choose their investment in the contest. While a link improves the strength of an agent, it also improves the position of her rival. It is thus not obvious that they decide to cooperate. We characterize all pairwise equilibrium networks and fi...
Article
Full-text available
Solution concepts in social environments use either a direct or indirect dominance relationship, depending on whether it is assumed that agents are myopic or farsighted. Direct dominance implies indirect dominance, but not the reverse. Hence, the predicted outcomes when assuming myopic (direct) or farsighted (indirect) agents could be very differen...
Article
Solution concepts in social environments use either a direct or indirect dominance relationship, depending on whether it is assumed that agents are myopic or farsighted. Direct dominance implies indirect dominance, but not the reverse. Hence, the predicted outcomes when assuming myopic (direct) or farsighted (indirect) agents could be very differen...
Article
In a setting of R&D competition, we study how collaboration affects strategic decisions during a patent contest, and how the latter influences the collaboration network structures the firms can form. We use an all pay auction approach to endogenize both network formation and R&D intensities, and to take heterogeneous and private valuations for pate...
Article
Full-text available
Different solution concepts (core, stable sets, largest consistent set, ...) can be defined using either a direct or an indirect dominance relation. Direct dominance implies indirect dominance, but not the reverse. Hence, the predicted outcomes when assuming myopic (direct) or farsighted (indirect) agents could be very different. In this paper, we...
Article
Full-text available
We analyze collusion in an infinitely repeated version of a standard auction with a continuum of types. Because of the lack of efficiency results in this setting the literature has focused on determining and comparing benchmarks on how well bidders can collude. Aoyagi (2003) has shown that the bidders can improve upon static bid rotation, making us...
Article
Full-text available
When selling their products domestically or internationally, firms rely on more than just price as a strategic variable. They also rely on non-price instruments such as advertising and/or R&D investments. Any trade policy that affects or limits the use of one variable will likely have strategic consequences for the use of all the others. Using a Ho...
Article
In this paper we study contract formation in a standard insurance model with one-sided ambiguity: the agent is ambiguous about the likelihood of relevant events while the insurer does not face ambiguity but is aware of the fact that the agent does. We argue that a contract offer can potentially transfer this informational advantage to the insured....
Article
We adopt the notion of von Neumann-Morgenstern (vNM) farsightedly stable sets to determine which matchings are possibly stable when agents are farsighted in one-to-one matching problems. We provide the characterization of vNM farsightedly stable sets: a set of matchings is a vNM farsightedly stable set if and only if it is a singleton subset of the...
Article
Full-text available
A vast and often confusing economics literature relates competition to investment in innovation. Following Joseph Schumpeter, one view is that monopoly and large scale promote investment in research and development by allowing a firm to capture a larger fraction of its benefits and by providing a more stable platform for a firm to invest in R&D. Ot...
Article
This paper analyzes the role of retaliation in trade agreements. It shows that, in the presence of private information, retaliation can always be used to increase the welfare derived from such agreements by the participating governments. In particular, it is shown that retaliation is a necessary feature of any efficient equilibrium. We argue that r...
Article
Full-text available
Over the last two decades, the use of antidumping (AD) measures has been characterized by two main features. First and foremost, it has increased dramatically. Additionally, it has not - to a large extent - been used to counteract the existence of dumping, but rather in a strategic or retaliatory fashion. These empirical findings have led many to p...
Article
Full-text available
When selling their products domestically or internationally firms rely on more than just price as a strategic variable. Any trade policy that affects or limits the use of one of these variables will likely have strategic consequences for the use of all the others. For instance, will liberalization of advertising markets lead to more price competiti...

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Project (1)
Archived project
Examine the links between big data, differential pricing and consumer welfare