The Manchester School VOLUME 70 2002 Managing Editor: Chris Orme Editors: Rabah Amir, Martyn Andrews, Keith Blackburn and Eyal Winter Associate Editors: Mike Artis, Robin Bladen-Hovell. Richard Cornes, David Greenaway. Hans Haller, Paul Madden, Keith McLaren, Frederick Nixson, Denise Osborn, Christian Schultz, Alan Sutherland, David Young Book Review Editor: Martin Currie Editorial Assistant: Ann Drozdziak CONTENTS Page No.1 January 2002 INTRODUCTION : ee RABAH AMIR PATENT LICENSING: THE INSIDE STORY ... Morton I. KAMIEN YAIR TAUMAN NETWORK COMPETITION AND ACCESS CHARGE TOKER DOGANOGLI RULES . YAIR TAUMAN COALITIONS AND NETWORKS IN INDUSTRIAL ORGANIZATION FRANCIS BLOCH THE TIMING OF NEW TECHNOLOGY ADOPTION: THEORETICAL MODELS AND EMPIRICAL EVIDENCI ; ate is th ' HEIDRUN C. Hopp MERGERS BETWEEN ASYMMETRIC — FIRMS: PROFITABILITY AND WELFARE : RAMON FAULI-OLLER MONOPOLY VERSUS R&D-INTEGRATED DUO- RABAH AMIR POLY Some Vines’ Keck tee pa. tat ate Niets NANNERUP ANNA STEPANOVA ELINE EGUIAZAROVA PRODUCT LINES AND PRICE DISCRIMINATION Victor GINSBURGH IN THE EUROPEAN CAR MARKET SHLOMO WEBER Blackwell Publishers Lid and The Victoria l f Manchester, 2002 Publishedb y Blackwell Publishers Ltd. 108 Cowl va é Oxford OX4 UF. UK, and 350 Main Street, Mald MA 02148 838 The Manchester School VOLUME 70 2002 Managing Editor: Chris Orme Editors: Rabah Amir, Martyn Andrews, Keith Blackburn and Eyal Winter Associate Editors: Mike Artis, Robin Bladen-Hovell. Richard Cornes, David Greenaway. Hans Haller, Paul Madden, Keith McLaren, Frederick Nixson, Denise Osborn, Christian Schultz, Alan Sutherland, David Young Book Review Editor: Martin Currie Editorial Assistant: Ann Drozdziak CONTENTS Page No.1 January 2002 INTRODUCTION : ee RABAH AMIR PATENT LICENSING: THE INSIDE STORY ... Morton I. KAMIEN YAIR TAUMAN NETWORK COMPETITION AND ACCESS CHARGE TOKER DOGANOGLI RULES . YAIR TAUMAN COALITIONS AND NETWORKS IN INDUSTRIAL ORGANIZATION FRANCIS BLOCH THE TIMING OF NEW TECHNOLOGY ADOPTION: THEORETICAL MODELS AND EMPIRICAL EVIDENCI ; ate is th ' HEIDRUN C. Hopp MERGERS BETWEEN ASYMMETRIC — FIRMS: PROFITABILITY AND WELFARE : RAMON FAULI-OLLER MONOPOLY VERSUS R&D-INTEGRATED DUO- RABAH AMIR POLY Some Vines’ Keck tee pa. tat ate Niets NANNERUP ANNA STEPANOVA ELINE EGUIAZAROVA PRODUCT LINES AND PRICE DISCRIMINATION Victor GINSBURGH IN THE EUROPEAN CAR MARKET SHLOMO WEBER Blackwell Publishers Lid and The Victoria l f Manchester, 2002 Publishedb y Blackwell Publishers Ltd. 108 Cowl va é Oxford OX4 UF. UK, and 350 Main Street, Mald MA 02148 838 839 Page TESTING FOR ‘MONOPOLY MARKET POWER WHEN PRODUCTS ARE DIFFERENTIATED IN QUALITY FRANK VERBOVEN COMPETING HEAD-TO-HEAD OR SELLING TO A FRINGE MARTIN Peirz PURE COMPONENT PRICING IN A DUOPOLY ... CHUN-HSIUNG LIAO AMPARO URBANO DELEGATION IN A VERTICALLY DIFFER- FATIMA BARROS ENTIATED DUOPOLY ISABEL GRILO No.2 March 2002 THE DETERMINANTS OF TECHNOLOGY DIFFU- SION: EVIDENCE FROM THE UK FINANCIAL ADRIAN GOURLAY SECTOR Eric PENTECOST EFFICIENCY IN BANKING: EMPIRICAL EVIDENCE S. CARBO FROM THESAVINGS BANKS SECTOR ... E. P. M. GARDENER J. Wittiams 2 REAL EXCHANGE RATE BEHAVIOUR UNDER FIXED AND FLOATING EXCHANGE RATE James R. LOTHIAN REGIMES CorNELIA H. MCCARTHY THE WELFARE AND POLITICAL ECONOMY DIMENSIONS OF PRIVATE VERSUS STATE PauL Cook ENTERPRISE eat. con Raut V. FABELLA 246 JEVONS’S DEBT TO BENTHAM: MATHEMATICAL ECONOMY. MORALS AND PSYCHOLOGY NATHALIE SIGOT BOOK REVIEWS Blackwell Publishers Ltd and The Victoria University of Manchester, 2002 840 No.3 June 2002 FOREIGN DIRECT INVESTMENT AND THE SINGLE MARKET J. PereR NEARY THE PROCESS OF EUROPEAN INTEGRATION AND THE DETERMINANTS OF ENTRY BY NON-EU MULTINATIONALS IN UK MANU- FACTURING SOURAFEL GIRMA : FISCAL INCENTIVES, EUROPEAN INTEGRATION AND THE LOCATION OF FOREIGN DIRECT FLORENCE HUBER1 INVESTMENT NIGEL PAIN FOREIGN DIRECT INVESTMENT, INFRA- STRUCTURE AND THE WELFARE EFFECTS OF LABOUR MIGRATION ... FRANK BARRY THE IMPACT OF EXCHANGE RATE VOLATILITY HOLGER GORG ON US DIRECT INVESTMENT .. KATHARINE WAKELIN FOREIGN DIRECT INVESTMENT AS TECHNO- LOGY TRANSFERRED: SOME PANEL EVI- Nauro F. CAMPos DENCE FROM THE TRANSITION ECONOMIES YUKO KINOSHITA INTEGRATION, FOREIGN DIRECT INVESTMENT AND LABOUR MARKETS: MICROECONOMIC Noe. GASTON PERSPECTIVES . DOUGLAS NELSON REGIONAL INTEGRATION AGREEMENTS AND V. N. BALASUBRAMANYAM FOREIGN DIRECT INVESTMENT: THEORY David SAPSFORD AND PRELIMINARY EVIDENCE Davib GRIFFITHS No.4 Special Issue 2002 EDITORS’ INTRODUCTION PHILip ARESTIS Jacuit S. CHADHA DOES INSTITUTIONAL CHANGE REALLY MAT- TER? INFLATION TARGETS, CENTRAL BANK V. ANTON MUSCATELLI REFORM AND INTEREST RATE POLICY IN PATRIZIO TIRELLI THE OECD COUNTRIES CARMINE TRECROCI DOES INFLATION TARGETING AFFECT THE PHILIP ARESTIS TRADE-OFF BETWEEN OUTPUT GAP AND GUGLIELMO M. CAPORALI INFLATION VARIABILITY ... ANDREA CIPOLLINI INFLATION TARGETING, EXCHANGI RATE FERNANDO ALEXANDRI VOLATILITY AND INTERNATIONAL POLICY JOHN DRIFFILI COORDINATION FaBio SPAGNOLO INFLATION AND PRICE LEVEL TARGETING IN A Jacuit S. CHADHA NEW KEYNESIAN MODEL. CHARLES NOLAN POLICY MAKERS’ REVEALED PREFERENCES AND THE OUTPUT- INFLATION VARIABILITY STEPHENG . CECCHETTI TRADE-OFF: IMPLICATIONS FOR THE EURO- M. M. McConnett PEAN SYSTEM OF CENTRAL BANKS GABRIEL PEREZ-QUIROS INFLATION TARGETS AS A STABILIZATION LAVAN MAHADEVA DEVICE ... GABRIEL STERNI Blackwell Publishers Ltd and The Victoria University of Manchester, 2002 No.5 September 2002 SEASONAL TIME SERIES AND AUTOCOR- HAHN SHIK LEE RELATION FUNCTION ESTIMATION .... Eric GHYSELS WILiiaM R. BELL A NOTE ON’ ESTIMATING MARKET-BASED C. Brooks MINIMUM CAPITAL RISK REQUIREMENTS: A A. D. CLARE MULTIVARIATE GARCH APPROACH ... G. PERSAND COMPARISON OF ECONOMIC EFFICIENCY ESTI- MATION METHODS: PARAMETRIC AND NON- Tal-Hsin HUANG PARAMETRIC TECHNIQUES Mei-Hut WANG REAL AND NOMINAL SHOCKS TO EXCHANGE Liam A. GALLAGHER RATES: DOES THE REGIME MATTER? ELLA KAVANAGH BOOK REVIEWS... No.6 December 2002 SELECTING FROM AMONGST NON-NESTED CONDITIONAL VARIANCE MODELS: INFOR- MATION CRITERIA AND PORTFOLIO DETER- Curis BROOKS MINATION. SIMON P. BuRKI THE STOCHASTIC STRUCTURE OF THE TIME- VARYING BETA: EVIDENCE FROM UK COMPANIES TAUFIQg CHOUDHRY THE UTILIZATION OF EDUCATION AND SKILLS: FRANCIS GREEN EVIDENCE FROM BRITAIN STEVEN MCINTOSH ANNA VIGNOLES ON THE EFFECTIVENESS OF THE LIFETIME- EMPLOY MENT-CONTRACT POLICY KAZUHIRO OHNISHI TERM STRUCTURE FORECASTS OF INFLATION: N. BLAKE SOME FURTHER RESULTS... S. G. B. HENRY D. ROBERTSON 822 OTHER BOOKS RECEIVED LIST OF REFEREES ... INDEX Blackwell Publishers Ltd and The Victoria University of Manchester, 2002