Besfamille, Martin; Figueroa, Nicolás; Guzmán, Léon - 2023
We consider a model featuring a single-product natural monopoly, which faces evaders, i.e., individuals that may not … the price, the level of deterrence effort, and socially costly transfers to ensure the monopoly's participation. We obtain … to finance the firm's deficit. The regulated price is always below the monopoly price and, under sufficient conditions …