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economic settings that do not, at first sight, look like auctions. We also discuss some more obvious applications, especially …
Persistent link: https://www.econbiz.de/10005792157
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Persistent link: https://www.econbiz.de/10010604844
The condition for when a price control increases consumer welfare in perfect competition is tighter than often realised. When demand is linear, a small restriction on price only increases consumer surplus if the elasticity of demand exceeds the elasticity of supply; with log-linear or...
Persistent link: https://www.econbiz.de/10004976788
Price controls lead to misallocation of goods and encourage rent-seeking. The misallocation effect alone ensures that a price control always reduces consumer surplus in an otherwise-competitive market with convex demand if supply is more elastic than demand; or with log-convex demand (e.g.,...
Persistent link: https://www.econbiz.de/10010823432
Price controls lead to misallocation of goods and encourage rent-seeking. The misallocation effect alone is enough to ensure that consumer surplus is always reduced by a price control in an otherwise-competitive market with convex demand if supply is more elastic than demand; or when demand is...
Persistent link: https://www.econbiz.de/10009369399
The condition for when a price control increases consumer welfare in perfect competition is tighter than often realised.  When demand is linear, a small restriction on price only increases consumer surplus if the eleasticity of demand exceeds the elasticity of supply; with log-linear or...
Persistent link: https://www.econbiz.de/10011004158
Setting a price that results in rationing may be optimal for a seller whose customers must make a specific investment to be able to use his product. Although rationing results in <MI>ex post<D> inefficiency, the resulting distribution of <MI>ex post<D> surplus compensates consumers for their...</d></mi></d></mi>
Persistent link: https://www.econbiz.de/10005788950
Setting a price that results in rationing may be optimal for a seller whose customers must make a specific investment to be able to use its product. Rationing results in ex-post inefficiency, but the resulting distribution of ex-post surplus can compensate consumers for their...
Persistent link: https://www.econbiz.de/10005135051
The condition for when a price control increases consumer welfare in perfect competition is tighter than often realised. When demand is linear, a small restriction on price only increases consumer surplus if the elasticity of demand exceeds the elasticity of supply; with log-linear or...
Persistent link: https://www.econbiz.de/10008469681
Price controls lead to misallocation of goods and encourage rent-seeking. The misallocation effect alone is enough to ensure that consumer surplus is always reduced by a price control in an otherwise-competitive market with convex demand if supply is more elastic than demand; or when demand is...
Persistent link: https://www.econbiz.de/10013116913