The paper studies the impact of government budget constraint in a pure adverse selection problem of monopoly regulation … to regulation is proposed in which firms are free to enter the market and to choose their price and output levels … than traditional regulation where governments commit to both investment and operation cash-flows. This is especially …

bargaining on regulation. In a simple two way trade model a la Brander and Spencer, we take into account the three following … features of regulatory measures: a) a regulation raises the cost not only of foreign producers but also of domestic producers …; b) a regulation also creates a fixed cost which is entirely supported by foreign exporters; c) a regulation may provide …

and under optimal regulation, production in these sectors is inefficiently low. The small open country is relatively … for tradable goods. Free trade with optimal regulation is Pareto dominated by autarky with optimal regulation when, under …’ regulatory policies cannot be considered separately from trade policy instruments, when regulation is characterized by serious …