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This paper considers the efficiency of a contestable natural monopoly if consumers are heterogeneous and the monopolist can differentiate prices imperfectly. With restricted entry, the standard result in this case is that the monopoly offers a menu of price-quantity combinations which leads to...
Persistent link: https://www.econbiz.de/10009781681
This paper considers the efficiency of a contestable natural monopoly if consumers are heterogeneous and the monopolist can differentiate prices imperfectly. With restricted entry, the standard result in this case is that the monopoly offers a menu of price-quantity combinations which leads to...
Persistent link: https://www.econbiz.de/10005405906
[1982] type contestability model, we argue that the internet has reduced sunk costs and therefore increased contestability … contestability in deposit markets, and no effect for loan markets. The paper suggests that for time and savings deposits, the …
Persistent link: https://www.econbiz.de/10010298724
Does an increase in competition increase or decrease bank stability? I exploit how the state-specific process of interstate banking deregulation lowered barriers to entry into urban banking markets and find that greater competition significantly increases bank stability. This result is robust to...
Persistent link: https://www.econbiz.de/10011560206
In order to assess the effect of EMU on market conditions for banks based in countries which adopt the Single Currency, we use the H indicator suggested by Panzar and Rosse (1987). Our contribution is to assess results separately for large and small banks, and for interest income and total...
Persistent link: https://www.econbiz.de/10011604053
Adding to the literature on factors driving corruption and bribery, this paper examines the effect of contestability in … business operations on bribe solicitations. Contestability undermines bureaucratic rent-seeking potential and this paper tries … to capture this empirically using cross-country survey data. Results show that the relatively greater contestability of …
Persistent link: https://www.econbiz.de/10011872038
This paper argues that economic competition and political contestability are two key determinants of the successful … contestability that maintained government efficiency and led to political stability throughout history. The combination of these …
Persistent link: https://www.econbiz.de/10010273431
) and on combating the (anticompetitive) abuse of market power. Contestability refers to the openness of markets. More … original economic theory of contestability defines very strict conditions for perfectly contestable markets, antitrust has … employed the term contestability in broader and in varying ways, emphasizing the role of potential competition and potential …
Persistent link: https://www.econbiz.de/10014538728
depends on the contestability of elections, which declines as party fragmentation exceeds the long run level predicted by … of vote shares and a new index of electoral contestability over the history of the Canadian parliamentary system from …
Persistent link: https://www.econbiz.de/10011431297
The effective number of political parties (ENP) in a single member plurality rule electoral system is analyzed as a dynamic process whereby the tournament nature of the election contest induces excessive entry and sunk entry costs promote persistence even as Duverger-Demsetz type political...
Persistent link: https://www.econbiz.de/10012269457