Issue 2

June 2002

Payment Systems and Interchange Fees

In a typical bank credit card transaction, the merchant’s bank pays an interchange fee, collectively determined by all participating banks, to the cardholder’s bank.

Who Initiates Recalls and Who Cares? Evidence from the Automobile Industry

In this paper, we investigate two questions. First, we explore which entity (the NHTSA or the manufacturer) is more likely to initiate a given auto safety recall campaign.

Spillovers and the growth of local industries

In this paper we investigate the nature and directions of inter-industry dynamic linkages across Italian manufacturing sectors.

The Impact of Divestment on Firm Performance: Empirical Evidence from a Panel of UK Companies

It has widely been suggested that during the 1980s many diversified firms narrowed the scope of their activities by refocusing on core businesses, primarily through divestment activity.

Some Simple Economics of Open Source

There has been a recent surge of interest in open source software development, which involves developers at many different locations and organizations sharing code to develop and refine programs.