We demonstrate how the incentives of firms that partially own their suppliers or customers to foreclose rivals depend on how the partial owner can extract profits from the target. Compared to a fully vertically integrated firm, a partial owner may obtain only a share of the target’s profit but influence the target’s strategy significantly. We show that the incentives for customer and input foreclosure can be higher, equal, or even lower with partial ownership than with a vertical merger, depending on how the protection of minority shareholders and transfer price regulations affect the scope for profit extraction.
Election campaigns are increasingly conducted online. Social media platforms in particular shape political discourse and facilitate new ways of delivering political messages. This was initially considered a boon for democracy, but opaque manipulation tactics quickly turned it into a threat to fair and transparent elections. National regulatory frameworks have often proved to be inadequate for online campaigns and the transnational nature of European elections. The EU has reacted to this with a regulation on political advertising. The initiative facilitates transnational campaigning online and aims to protect the integrity of European elections. The 2024 European elections will be the first time EU rules operate in this area, putting these to the test. This election cycle will indicate whether political actors are striking out for more cross-border campaigns and whether they suffice to protect European elections. Critical here is how online platforms implement the new rules and how transparent they are about campaign-related posts on their sites.
EU enlargement has historically fostered economic growth and political stability. In the Western Balkans, however, the process has stalled for many years due to the myriad crises afflicting the EU and failure to deliver reforms in the Western Balkans. This policy brief examines the evolution of the EU accession process, the challenges faced by candidate countries, and the need for a revitalized approach that builds reforms into the accession process rather than keep them a precondition for kickstarting it. It calls for the EU to remove bilateral disputes from the process and open accession talks with all candidate countries in all areas covered by the acquis, ensuring that all candidate countries have a fair chance based on their merits.
The average revenue, or market value, of wind and solar energy tends to fall with increasing market shares, as is now evident across European electricity markets. At the same time, these markets have become more interconnected. In this paper, we empirically study the multiple cross-border effects on the value of renewable energy: on one hand, interconnection is a flexibility resource that allows to export energy when it is locally abundant, benefitting renewables. On the other hand, wind and solar radiation are correlated across space, so neighboring supply adds to the local one to depress domestic prices. We estimate both effects, using spatial panel regression on electricity market data from 2015 to 2023 from 30 European bidding zones. We find that domestic wind and solar value is not only depressed by domestic, but also by neighboring renewables expansion. The better interconnected a market is, the smaller the effect of domestic but the larger the effect of neighboring renewables. While wind value is stabilized by interconnection, solar value is not. If wind market share increases both at home and in neighboring markets by one percentage point, the value factor of wind energy is reduced by just above 1 percentage points. For solar, this number is almost 4 percentage points.
During campaigns for legislative elections, a large portion of the general public follows televised debates between the front-running candidates. How can the candidates use the public interest in the debates to increase the support for their party? In this article, we argue that especially challenger candidates can improve the public perception of their valence qualities, such as personal integrity, leadership, and competence, and can - as a result - improve the support of their parties. We expect the perceived policy stances of the candidates to matter less, as parties often already have well-defined policy profiles that matter to voters. Building on televised debate experiments during the German Federal Elections of 2009 and 2013, we analyse the effect of the debates on party vote and in how far this relationship is mediated by changes in valence and policy evaluations of the candidates. Results show that changes of candidate valence, but not changes in policy perceptions, of the social-democratic front-running candidates mediate the vote intention for the party. Respondents who perceived the candidates more competent, empathetic and have integrity as a result of the debate are more likely to vote for their party. Our analysis further reveals, however, that this valence effect does not carry-over to vote intention briefly before the election.
Residential buildings directly contribute 11% to local greenhouse gas emissions and up to 40% of total emissions when accounting for energy use for electricity generation. In order to achieve the climate targets in line with the Federal Climate Protection Act, increased ambition level of climate policy instruments is required in this sector. In this research, we are interested in the governance of this sector and the role of evaluation: the government-mandated processes used to evaluate policy in terms of the actors, organisations and ministries involved in executing and coordinating these processes; and the metrics and methods as well as the scope and granularity of evaluations.
The report follows a mixed methods research design, utilising multiple sources of primary data for triangulation. We combine 14 expert interviews with content analysis of published reports to investigate the quality and scope of the current evaluation procedures in place. Building on institutional and evaluation literatures, the research offers an enhanced understanding of the content, scope and processes of ex-post evaluation of policy instruments.
Across industrialized countries, regional disparities in labor market outcomes and income have increased in recent decades. This paper investigates how one of the largest localized labor demand shocks tied to the beginning of de-industrialization- the decline of the mining industry between 1960 and 2010 - affects labor market outcomes in the long run. The analysis relies on a new panel data set based on digitized census records from Belgium, France, the UK, and Germany that allows to trace labor market adjustments over 60 years for the male and female working-age population separately. For the causal estimation, I use an IV-shift share approach that exploits exogenous variation in the shifts induced by increased seaborne trade of energy substitutes and the share given by geological rock strata to predict mining activity. The male population disproportionately suffered under this (early) de-industrialization shock and the subsequent job loss. For the male population, the employment-population ratio has not yet recovered resulting in persistent local joblessness. In contrast, the female working-age population experienced a strong catch-up in employment and participation. I find that at the aggregate level, a substantial, albeit time-lagged population response paired with a strong increase in female participation rates fully compensate for the loss of male jobs over the decades. As a consequence, the male-female employment gap shrinks over time.
Narrative Persuasion
(2024)
We study how one person may shape the way another person interprets objective information. They do this by proposing a sense-making explanation (or narrative). Using a theory-driven experiment, we investigate the mechanics of such narrative persuasion. Our results reveal several insights. First, narratives are persuasive: We find that they systematically shift beliefs. Second, narrative fit (coherence with the facts) is a key determinant of persuasiveness. Third, this fit-heuristic is anticipated by narrative-senders, who systematically tailor their narratives to the facts. Fourth, the features of a competing narrative predictably influence both narrative construction and adoption.