CEGE - Working Papers / Preprints
Permanent URI for this collection
Browse
Recent Submissions
- Five roles for participation to improve performance in social economy organisationsPublication . Mendes, Américo M. S. Carvalho
- The amazing geometry of price competition with quality dependent production costsPublication . Pires, Cesaltina Pacheco; Pinho, Joana; Jorge, Sílvia Ferreira; Catalão-Lopes, MargaridaThis paper provides a full characterization of price competition in a vertical differentiation model with quality dependent marginal production costs. For each vector of qualities, we determine the Nash equilibrium and show graphically the different market regions for different values of the lowest quality valuation parameter, which reveals an amazing geometry. Besides the classical cases of high-quality monopoly or duopoly with partial or full coverage, we show that, when the high-quality firm has a too high quality, the equilibrium is a low-quality monopoly. Moreover, for positive lowest quality valuation, there always exist interior and corner full coverage duopoly equilibria. On the contrary, partial coverage duopoly do not exist when the lowest consumers’ valuation of quality is high whereas high-quality monopoly are not possible for low values of lowest quality valuation. Our findings are the backbone of future analysis of quality choices and may be relevant for firms and policy makers.
- The Portuguese forests: country level report delivered to the EFFE Project: evaluating financing of forestry in EuropePublication . Mendes, Américo M. S. Carvalho; Feliciano, Diana; Tavares, Marisa; Dias, Rafael
- Organizações de economia social: o que as distingue e como podem ser sustentáveisPublication . Mendes, Américo M. S. Carvalho
- The pricing of sustainable syndicated loansPublication . Alves, Paulo; Gonçalo, Jorge; Pinto, João MThis paper provides a comparative analysis of sustainable and conventional syndicated loan spreads and pricing. Using a cross-section of 24,962 syndicated loan tranches closed between 2018 and 2022 in OECD countries, we show that sustainable and conventional loans are differently priced, spreads of sustainable versus conventional loans do not differ significantly, and banks rely on contractual, macroeconomic, bank syndicate structure, and borrowers’ characteristics when pricing sustainable tranches. At the deal-level, our results do not support the hypothesis of sustainable debt financing as a mechanism for reducing firms’ funding costs. We also find that economies of scale, institutional, and information asymmetry arguments affect firms’ choice between sustainable and conventional syndicated deals.
- Sustainable versus conventional bonds: a comparative analysis of primary market spreadsPublication . Pinto, João; Ribeiro, DivaThis paper offers a comparative analysis of the credit spreads and pricing of sustainable and conventional corporate bonds. Using a cross-section of 30,368 bonds issued by 8,267 nonfinancial firms globally between 2012 and 2022, we find that sustainable and conventional bonds react differently to common pricing factors. Notably, investors rely less on credit ratings when pricing sustainable bonds compared to conventional bonds. We also find no significant difference in the spreads of sustainable bond tranches relative to similar conventional bonds. This result holds across green, social, and sustainability bonds, as well as in a matched sample of conventional bonds. Furthermore, our findings are consistent across both pre-COVID and COVID periods, indicating that issuing firms do not use sustainable bonds as a strategy to lower borrowing costs.
- Vertical product differentiation in the lab: impact of consumers’ preferencesPublication . Alventosa, Adriana; Pinho, Joana; Jorge, Sílvia Ferreira; Catalão-Lopes, MargaridaWe revisit a quality-then-pricing duopoly game, theoretically and experimentally exploring how heterogeneity in consumers’ preferences affects firms’ decisions and profits. We find that firms differentiate less their products in the lab than the theoretical model predicts, especially when the heterogeneity in consumers’ preferences is high. When this heterogeneity is small, the firm producing the low-quality good profits more than the rival in the lab, which contradicts the theoretical predictions.
- Horizontal mergers between multisided platforms: insights from Cournot competitionPublication . Correia-da-Silva, João; Jullien, Bruno; Lefouili, Yassine; Pinho, JoanaThis paper discusses the literature on horizontal mergers between multisided platforms and argues that the Cournot model can provide useful insights into the welfare effects of such mergers. To illustrate those insights, we develop a simple model in which two-sided platforms offer a homogeneous service and compete à la Cournot, and derive the effects of “average-marginal-cost-preserving” mergers on consumers on both sides of the market. We conclude with a discussion of several research avenues that could be explored to understand better the impact of horizontal mergers between multisided platforms.
- The effects of contract mechanisms between the government and private hospitals on the social utilityPublication . Teymourifar, Aydin; Kaya, Onur; Ozturk, GurkanIn this work, we deal with a real healthcare system, in which public and private hospitals with different characteristics co-exist. While public hospitals have lower costs, they also suffer from long waiting times, diminishing the perceived quality of care for patients. Conversely, private hospitals, with their higher fees, offer shorter waiting periods, resulting in a more favorable perception of quality. A balanced healthcare system could offer societal benefits. Pricing strategies greatly influence a patient's hospital selection. For instance, reduced fees in private hospitals attract more patients, consequently reducing overcrowding in public facilities and elevating the overall quality of services provided. This study aims to develop pricing models to foster a balanced and socially advantageous healthcare system. Within this system, private hospital pricing is determined through contract mechanisms with the government. Thus, we delve into the ramifications of various contract models between the government and private hospitals on social utility. Our findings underscore the communal advantages of contract mechanisms. Furthermore, we generalize the proposed models to be applicable to similar systems.
- Using DEMATEL and ISM to design green public policies based on the system of system approachPublication . Teymourifar, Aydin; Trindade, Maria A. M.In this paper, we propose a novel approach to the development of green public policies. We emphasize the significance of the System of Systems (SoSs) methodology, which concentrates on understanding and managing complex systems by contemplating their interdependencies and interactions as a single integrated system. Based on this perspective, we view green public policy as a system interacting with the energy, health, pollutants, and economic systems of the SoSs. We employ both Decision-Making Trial and Evaluation Laboratory (DEMATEL) and Interpretive Structural Modeling (ISM) techniques as a method of systematic structural analysis to comprehend the relationships between the aforementioned systems. We provide a comprehensive literature review on the application of these soft operation research (SOR) techniques. We note that SOR methods are suitable for the formulation of effective and long-lasting public policies. Using an example, we demonstrate the primary advantage of DEMATEL and ISM, which is the establishment of easily comprehendible causal relationships between the systems in the SoSs.