There are many industries in which potentially competitive segments require services provided by natural monopoly … agreements between the monopoly bottleneck and downstream firms are possible, Demsetz auctions need floors on bids, since … otherwise welfare can be lower than with an unregulated monopoly. We model an underhand agreement using a standard hidden …

. In this paper, we review the evolution of business regulation in Hong Kong, analyze the salient features of its scheme of … control regulation and evaluate the impact of transition from regulation to competition. To provide a sharp contrast between … the difficulties of the traditional approach to regulation and the benefits of introducing competition, we focus on the …

-driven regulation based on "safe tests," i.e. tests that are passed with probability one by competitive bidders, but need not be passed …

basic and ubiquitous features of regulation as actually implemented throughout the world has received little theoretical … because exemption induces additional harmful activity to be channeled their way. This article analyzes optimal regulation with … regulation, which illustrates the contrast with the mechanism design approach that analyzes the optimal use of instruments of a …

We propose an activity-generating theory of regulation. When courts make errors, tort litigation becomes unpredictable … risk, this type of regulation can raise welfare …

but that may be offsetting the under-consumption associated with monopoly prices. If all advertising is misinformation …

. Consistent with firms seeking to avoid costly regulation, we document significant bunching around multiple regulatory thresholds …

disclosure requirements that exist in these markets. We show that reducing the number of charlatans through regulation decreases … regulation, implying that the regulation we observe in these markets likely derives from producer interests. Using these insights …

IV explores the implications of the analysis for a variety of issues relating to monopoly and public regulation, such as …, suffer a loss, that is not offset by gains to the monopolist. This is the "deadweight loss" from monopoly, and in … conventional analysis the only social cost of monopoly. The loss suffered by those who continue to buy the product at the higher …