Table Of ContentCompetition, Efficiency, and Welfare
COMPETITION, EFFICIENCY,
ANDWELFARE
Essays in Honor of Manfred Neumann
Edited by
DENNIS c. MUELLER
University of Vienna
ALFREDHAID
Deutsches Institut fur Wirtshaftsforschung (DIW),
Berlin
and
JURGEN WEIGAND
University of Erlangen-Nurnberg
"~
SPRINGER-SCIENCE+BUSINESS MEDIA, B.V.
A C.I.P. Catalogue record for this book is available from the Library of Congress.
ISBN 978-1-4613-7542-5 ISBN 978-1-4615-5559-9 (eBook)
DOI 10.1007/978-1-4615-5559-9
Printed on acid-free paper
Ali Rights Reserved
© 1991 Springer Science+Business Media Dordrecht
Originally published by Kluwer Academic Publishers in 1991
Softcover reprint ofthe hardcover lst edition 1991
No part of the material protected by this copyright notice may be reproduced or
utilized in any form or by any means, electronic or mechanical,
including photocopying, recording or by any information storage and
retrieval system, without written permission from the copyright owner.
Table of Contents
List of Contributors vii
Preface IX
Introduction: About Manfred Neumann
Dennis C. Mueller, Alfred Raid and Jiirgen Weigand 1
I. Innovation and R&D
1. Innovation as an Engine of Competition
Paul A. Geroski 13
2. Innovation, Investment, and Corporate Finance
Jiirgen Weigand 27
3. Vertical Organization, Technology Flows and R&D Incentives
An Exploratory Analysis
Dietmar Rarhoff 57
ll. Cartels
4. Depression Cartels, Market Structure, and Performance
Stephen Martin 85
5. Stability of German Cartels
Joachim Schwalbach and Anja Schwerk 101
Ill. Mergers and Merger Policy
6. Market Definition for Media Mergers
Bruce R. Lyons 129
7. European Merger Control, Political Discretion,
and Efficient Market Structures
Alfred Raid 147
8. Foundations of a Bank Merger Control for Europe
Doris Neuberger 173
9. Jurisdictional Problems of Merger Control
An International Comparison
Ingo Schmidt 187
vi Table of Contents
IV. Methodological Issues in Industrial Organization
10. Theories of Industrial Organization and Competition Policy
What are the Links?
Alexis Jacquemin 199
11. Industrial Policy and Industrial Organization
David B. Audretsch 223
12. The Use of Game Theoretical Models For
Empirical Industrial Organization
Karl Aiginger 253
13. Empirical Facts, Economic Theory, and Everyday Experience
in Industrial Organization - Three Sides of the Same Story?
Markus Thomas Munter 279
V. International Trade
14. Pricing under Changing Exchange Rates: A Critical Survey
Thusnelda Tivig 301
15. Export Pricing Behavior under Flexible Exchange Rates
The Case of German Automobile Exporters in the US
Wolfgang Harbrecht 317
VI. Aggregate Performance
16. Competition and Growth: A Macroeconomic Perspective
Rainer Klump 329
17. Efficiency of Social Security Systems
Korea's Funded System versus Germany's PAYG System
SanghoKim 341
18. On the Economic Decline of Nations
Dennis C. Mueller 351
Index of Names 383
Index of Subjects 389
List of Contributors
Karl Aiginger: Austrian Institute of Economic Research (WIFO), Vienna, and
University of Linz, Austria.
David B. Audretsch: Institute of Development Strategies, School of Policy and
Environmental Analysis (SPEA), Indiana University at Bloomington, USA, and
Centre of Economic Policy Research, London, UK.
Paul A. Geroski: London Business School, London, UK.
Alfred Haid: Senior research fellow, Deutsches Institut fUr Wirtschaftsforschung
(DIW), Berlin, and University of Erlangen-Niirnberg, Germany; doctoral dissertation
1976 and Habilitation 1982 supervised by Professor Neumann.
Wolfgang Harbrecht: University of Erlangen-Niirnberg, Germany; doctoral disser
tation 1973 and Habilitation 1977 supervised by Professor Neumann.
Dietmar Harhoff: Zentrum fUr Europaische Wirtschaftsforschung (ZEW), Mannheim
and Wissenschaftszentrum fiir Sozialforschung Berlin (WZB), Germany.
Alexis Jacquemin: Chief Economic Advisor of the European Commission, Brussels,
and Universite Catholique de Louvain, Belgium.
Sangho Kim: Kwandong University, Kangreung, and Presidential Commission on
Industrial Relations Reform, Seoul, South Korea; doctoral dissertation 1992 super
vised by Professor Neumann.
Rainer Klump: University of Ulm, Germany; Habilitation 1991 supervised by
Professor Neumann.
Bruce R. Lyons: University of East Anglia, Norwich, UK.
Stephen Martin: Centre for Industrial Economics, Institute of Economics, University
of Copenhagen, Denmark.
Dennis C. Mueller: University of Vienna, Austria.
Markus T. Munter: University of Erlangen-Niirnberg, Germany; doctoral student of
Professor Neumann.
viii Contributors
Doris Neuberger: University of Rostock, Germany; doctoral dissertation 1989 and
Habilitation 1993 supervised by Professor Neumann.
Ingo Schmidt: University of HohenheirnlStuttgart, Germany.
Joachim Schwalbach: Institute of Management, Humboldt-University at Berlin,
Germany.
Anja Schwerk: Institute of Management, Humboldt-University at Berlin, Germany.
Thusnelda Tivig: University of Rostock, Germany; Habilitation 1993 supervised by
Professor Neumann.
Jurgen Weigand: University of Erlangen-Niirnberg, Germany; doctoral dissertation
1994 supervised by Professor Neumann.
Preface
The idea to honor Professor Neumann with a Festschrift that not only assembles his
pupils but also internationally renowned scholars was born in early 1997. Editing a
book of essays is a venture that highly depends on the enthusiasm of the contributing
authors. We would like to warmly thank all contributors for their motivated and
timely cooperation. Due to limitations in space as well as in order to guarantee
compactness as regards contents the essays in this book only cover some of the
various fields in economics Professor Neumann has contributed to over the years.
We gratefully acknowledge the advice and administrative support of Professor
Dr. Karl-Dieter Griiske (Executive Director of the Department of Economics, Norn
berg). Many thanks for their enormous effort in preparing the manuscript and in
helping organize the birthday symposium go to the staff of Professor Neumann's
institute: Mrs Ursula Briceno La Rosa, Diplom-Volkswirt Udo Eich, Diplom-Sozial
wirt Uli Fell, Diplom-Volkswirtin Alexandra GroB, and Diplom-Volkswirt Markus
Thomas Monter.
Wien - Berlin - Nornberg Dennis C. Mueller
May 1998 Alfred Raid
Jiirgen Weigand
MANFRED NEUMANN
About Manfred Neumann
Dennis C. Mueller, Alfred Haid,
and Jurgen Weigand
Many of us owe a great debt of gratitude to Manfred Neumann, as a teacher and
colleague. Thus, it is no surprise that there was great enthusiasm for writing a
collection of essays on competition and competition policy which would Manfred's
life achievements commemorate. This collection of papers in honor of Manfred
Neumann was prepared as a tribute to a teacher and scholar, whose accomplishments
have enriched various fields of economics. The breadth of his interests are reflected
in the breadth of topics covered in this volume.
Born on May 16, 1933, Manfred Neumann belongs to the generation of Germans
of the early thirties, whose school education was interrupted by World War II and
was influenced by the poor economic conditions of the post-war period. His early
years are probably typical of a number of scholars of his age. After completing his
school education by supplementary evening courses 1956 in Bremen he studied
economics at the University of Cologne. He graduated in 1960 and started a career in
commercial business. During this time he collected valuable knowledge of the
workings of cartels related to the export of iron and steel. He returned to the
university in 1962, and received his doctoral degree in economics in 1963. He
became an assistant of Theodor Wessels, at that time one of the leading neo-liberals
in Germany. After his Habilitation in 1966, Neumann was a lecturer in economics at
the University of Cologne until 1967. During this period, he also held a guest
professorship at the University of Mfinster.
In 1969 Manfred Neumann was appointed Professor of economics at Niirnberg
University. From 1974 to 1977 he was Dean of the Faculty of Economics and Social
D.C. Mueller et at. (eds.), Competition, Efficiency, and Welfare, 1-10.
© 1999 Kluwer Academic Publishers.
