We analyze the effect of price caps on equilibrium production and welfare in oligopoly under demand uncertainty. We … find that high price caps always increase production and welfare as compared to the situation without price cap. Price caps … price cap and show that typically, the optimal price cap is bounded away from marginal cost. …

Hospital markets are often characterised by price regulation and the existence of different ownership types. Using a … welfare in a price regulated duopoly with symmetric locations. In contrast to other studies on mixed oligopolies, this paper …