Sarmento, Paula; Brandão, António - Faculdade de Economia, Universidade do Porto - 2008
In this paper we compare the costs of two regulatory policies about the entry of new firms. We consider an incumbent … to persuade the regulator to make entry more difficult. With the first regulatory policy the regulator uses the incumbent … price pre-regulation to get information about the demand. With the second regulatory policy the regulator design a mechanism …