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Economics and Politics of Alternative Institutional Reforms

Caselli, Francesco; Gennaioli, Nicola - C.E.P.R. Discussion Papers - 2007

(deregulation) and improving contractual enforcement (legal reform). Deregulation fosters entry, thereby increasing the number of … deregulation, as it preserves incumbents' rents, while at the same time allowing the less efficient among them to transfer control … and capture (part of) the resulting efficiency gains. Using this insight, we show that there may be dynamic …

Persistent link: https://www.econbiz.de/10005124360

Efficient Exclusion

Moen, Espen R; Riis, Christian - C.E.P.R. Discussion Papers - 2005

In an important paper, Aghion and Bolton (1987) argue that a buyer and a seller may agree on high liquidation damages in order to extract rents from future suppliers. As this may distort future trade, it may be socially wasteful. We argue that Aghion and Bolton's analysis is incomplete in some...

Persistent link: https://www.econbiz.de/10005497799

Entry, Cost Reduction and Competition in The Portuguese Mobile Telephone Industry

Gagnepain, Philippe; Pereira, Pedro - C.E.P.R. Discussion Papers - 2005

We study the effect of entry on costs and competition in the Portuguese mobile telephony industry. We construct and estimate a model that includes demand, network, and cost equations. The latter accounts for inefficiency and cost reducing effort. We show that failure to account for cost reducing...

Persistent link: https://www.econbiz.de/10005791373