{"title":"A re-examination of the competitive effects of exclusive dealing","authors":"Guofu Tan, Adam C.L. Wong","doi":"10.1111/caje.70085","DOIUrl":"https://doi.org/10.1111/caje.70085","url":null,"abstract":"<p>The seminal 1987 paper by Mathewson and Winter demonstrates that the competitive effects of exclusive dealing depend on firm asymmetries. Revisiting their model with linear demand and constant marginal costs, we show that the equilibrium adoption and welfare impact of exclusive dealing are fully characterized by two sufficient statistics: the standalone surplus ratio (capturing the dominant firm's competitive advantage) and the geometric mean of demand diversion ratios (measuring product substitutability). Exclusive dealing is more likely to arise and harm consumer surplus when competitive advantage is stronger and products are closer substitutes. A stronger competitive advantage also raises the likelihood that exclusive dealing reduces social welfare, while the effect of substitutability on welfare is non-monotonic. We also show that both competitive advantage and substitutability can be empirically recovered from diversion ratios and market shares under the no-exclusive dealing regime.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"59 3","pages":"1015-1038"},"PeriodicalIF":0.9,"publicationDate":"2026-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"149072696","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Price caps, commitment and innovation","authors":"Gamal Atallah, Aggey Simons (Semenov)","doi":"10.1111/caje.70077","DOIUrl":"https://doi.org/10.1111/caje.70077","url":null,"abstract":"<p>We analyze innovation incentives under price-cap regulation by examining scenarios with endogenous price caps, both with and without regulatory commitment. In a setting without informational imperfections, our analysis reveals two principal conclusions. First, there is no trade-off between static and dynamic efficiency. Strengthening firm incentives by allowing it to charge higher prices, and thus realize greater profits, leads to less innovation because it reduces output. The optimal strategy to boost innovation and maximize welfare is to set a low price (and thus, a low profit) target because innovation incentives are proportional to output. Second, the benefits of regulatory commitment for innovation and welfare are not unambiguously clear: commitment neither consistently outperforms nor underperforms non-commitment. Under demand uncertainty, when the firm is risk-averse, the static–dynamic efficiency trade-off reappears, and the firm may prefer non-commitment due to risk-shielding. Under asymmetric information about firm demand type, the trade-off between static and dynamic efficiency becomes inherent (due to information rents and contract distortions), and commitment becomes unambiguously crucial for fostering innovation by preventing the “ratchet effect.”</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"59 3","pages":"966-988"},"PeriodicalIF":0.9,"publicationDate":"2026-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"149072529","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Peer effects at work on parental leave: Why is Papa not more involved?","authors":"Yaya Diallo, Fabian Lange","doi":"10.1111/caje.70080","DOIUrl":"https://doi.org/10.1111/caje.70080","url":null,"abstract":"<p>We estimate the peer effects of paternity leave-taking among male co-workers using the 2006 Quebec paternity leave reform. Using high-quality administrative data, we closely follow the birth date regression discontinuity research design of Dahl et al. (2014) who studied a similar reform in Norway in 1993 which resembles the Quebec reform. Depending on the length of follow-up, we estimate that having a male co-worker take paternity leave increases the probability that a father of a newborn takes leave by 3 to 6 percentage points. While the statistical significance of our findings differ from Dahl et al. (2014) using Norwegian data, these estimates are nevertheless consistent with the 11 percentage point increase they report.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"59 3","pages":"905-921"},"PeriodicalIF":0.9,"publicationDate":"2026-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/caje.70080","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"149072499","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"On the profitability of behaviour-based price discrimination under purchase-dependent preferences","authors":"Stéphane Lemarié, Cecilia Vergari","doi":"10.1111/caje.70079","DOIUrl":"https://doi.org/10.1111/caje.70079","url":null,"abstract":"<p>We study optimal monopoly pricing of non-durable goods over two periods when consumer preferences evolve endogenously. We introduce a propensity for a second purchase that defines the influence of the first-period purchase on the second-period willingness to pay for the product, reflecting either satiation or habit. With this setting, second-period demand depends on first-period purchase and price, raising a dynamic pricing problem. Optimal pricing is analyzed with, at the second period, either uniform pricing or price discrimination between past and new buyers. We show that the propensity for a second purchase affects the capacity of the monopoly to commit on the pricing scheme and on second-period prices. In particular, the monopoly, if able, cannot escape from discriminating between past and new buyers at the second period. However, this pricing scheme is more profitable for the monopoly, as compared to uniform pricing, if there is strong enough satiation. Moreover, the monopoly can commit on second-period prices only with uniform pricing and habit. These results contrast with the standard literature on dynamic pricing and behaviour-based price discrimination.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"59 3","pages":"1101-1127"},"PeriodicalIF":0.9,"publicationDate":"2026-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/caje.70079","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"149072605","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Credibility is trade policy","authors":"Joseph B. Steinberg","doi":"10.1111/caje.70093","DOIUrl":"https://doi.org/10.1111/caje.70093","url":null,"abstract":"<p>Export participation is a forward-looking decision that involves large up-front investments with back-loaded returns. This implies that trade responds to expected future policy as well as current policy. The same observed policy change can trigger a wide range of responses depending on how transitory or persistent that change is expected to be, and trade responds to changes in expectations even when there are no observed changes in policy at all. This article combines empirical evidence with structural modelling to show that these lessons have important implications for how researchers interpret trade data and how policy makers should use trade policy to accomplish their objectives.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"59 3","pages":"830-850"},"PeriodicalIF":0.9,"publicationDate":"2026-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/caje.70093","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"149072721","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Fertility incentives in Canada: Period and cohort perspectives","authors":"Siha Lee, Sitian Liu","doi":"10.1111/caje.70075","DOIUrl":"https://doi.org/10.1111/caje.70075","url":null,"abstract":"<p>We study the fertility effects of the 1997 Quebec Family Policy using two complementary approaches: (i) a period-based repeated cross-sectional analysis that examines the impact on period fertility (i.e., fertility rates in a given calendar year, such as births per 1,000 women age 15 to 49), and (ii) a cohort-based panel analysis that examines the impact on completed fertility for specific cohorts. Using aggregate vital statistics (1991–2019) and the synthetic control method, the period analysis indicates a long-run increase in period fertility, which may reflect both shifts in the timing of childbearing and changes in completed fertility among affected cohorts. To assess completed fertility, we conduct panel analysis using a 20% sample of Canadian tax returns and a dynamic difference-in-differences approach. For two relatively older cohorts of women who already entered reproductive years before the reform, we find that the policy reduced completed fertility while increasing their labour supply. Taken together, the findings show that the policy raised period fertility but lowered completed fertility for certain cohorts, indicating that its effects depend on the life-cycle stage at which women were exposed.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"59 3","pages":"875-904"},"PeriodicalIF":0.9,"publicationDate":"2026-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/caje.70075","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"149072550","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"“Tiger-hunting” and life satisfaction: A matter of trust","authors":"Youxing Zhang, Peter Howley, Clemens Hetschko","doi":"10.1111/caje.70083","DOIUrl":"https://doi.org/10.1111/caje.70083","url":null,"abstract":"<p>Through anti-corruption prosecutions, governments will often look to publicly signal their efforts at tackling corruption as a way of garnering political support. Our analysis combines Chinese data on the public disclosures of anti-corruption prosecutions and individual well-being indicators to explore the effect of these efforts for subjective well-being. We show that while such signals are intended to garner political support, they can inadvertently lower life satisfaction among citizens, especially when political trust is low. Overall, our analysis illustrates how public demonstrations of efforts aimed at addressing issues of concern, despite their intended positive political effects, can erode public well-being and potentially backfire when trust in the government is weak.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"59 3","pages":"944-965"},"PeriodicalIF":0.9,"publicationDate":"2026-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"149072705","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Impact of after-school care on maternal income: Evidence from Canadian administrative data","authors":"Ailin He, Laetitia Renée, Nagham Sayour","doi":"10.1111/caje.70076","DOIUrl":"https://doi.org/10.1111/caje.70076","url":null,"abstract":"<p>This paper estimates the average causal effect of access to subsidized before- and after-school care on the labour market outcomes of mothers. Specifically, we analyze a major policy reform implemented in Quebec (Canada) in 1998, which required all public primary schools to provide before- and after-school care at a low fixed fee, thereby reducing costs and expanding availability for families. We identify the intent-to-treat effect of the reform on service use and maternal labour market outcomes using administrative tax return data and a triple difference design. We find that, 7 years after implementation, the policy led to a substantial increase in mothers' use of childcare programs and raised their average annual labour income by 7%. These income gains are primarily driven by higher income among working mothers, rather than increased employment rates.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"59 3","pages":"922-943"},"PeriodicalIF":0.9,"publicationDate":"2026-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/caje.70076","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"149072549","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Mariya Brussevich, Chris Papageorgiou, Pauline Wibaux
{"title":"Pandemic disruptions in global supply chains: Evidence on trade values and prices from French firms","authors":"Mariya Brussevich, Chris Papageorgiou, Pauline Wibaux","doi":"10.1111/caje.70082","DOIUrl":"https://doi.org/10.1111/caje.70082","url":null,"abstract":"<p>This paper examines how firms responded to the disruptions caused by the global supply chain (GSC) shocks induced by the COVID-19 pandemic. Leveraging firm-level trade data from France, we analyze shifts in export and import values and prices in response to transportation bottlenecks and pandemic containment measures in partner countries. Our findings reveal that firms adapted to these shocks by temporarily scaling back trade volumes and dropping varieties. During the recovery phase, supply chain bottlenecks stoked price hikes, disproportionately affecting upstream industries. Furthermore, we demonstrate that firms using industrial robots in production and those with prudent inventory management practices were more resilient to the pandemic shock.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"59 3","pages":"1039-1071"},"PeriodicalIF":0.9,"publicationDate":"2026-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"149072701","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Shushanik Hakobyan, Sergii Meleshchuk, Robert Zymek
{"title":"Divided we fall: Differential exposure to geopolitical fragmentation in trade","authors":"Shushanik Hakobyan, Sergii Meleshchuk, Robert Zymek","doi":"10.1111/caje.70078","DOIUrl":"https://doi.org/10.1111/caje.70078","url":null,"abstract":"<p>This paper assesses differences in countries' macroeconomic exposure to trade fragmentation along geopolitical lines. Estimating structural gravity regressions for sector-level bilateral trade flows between 185 countries, we find that closer geopolitical ties are associated with lower barriers to trade, with the largest effects concentrated in a few sectors (notably, food and high-end manufacturing). Consequently, countries' exposure via trade to geopolitical shifts varies with their market size, comparative advantage and foreign policy alignments. Introducing our estimates into a dynamic many-country, many-sector quantitative trade model, we show that geoeconomic fragmentation—modelled as an increased sensitivity of trade costs to geopolitics and greater geopolitical polarization—generally leads to lower trade and incomes. However, emerging markets and developing economies (EMDEs) tend to see the largest impacts: real per-capita income losses for the median EMDE in Asia are 80% larger, and 120% larger for the median EMDE in Africa, than for the median advanced economy. This suggests that the costs of trade fragmentation could fall disproportionally on countries that can afford it the least.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"59 3","pages":"989-1014"},"PeriodicalIF":0.9,"publicationDate":"2026-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"149072640","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}