This study offers an extension of Grossman and Helpman (1994) political-economic framework to model an industry regulated by an integrated system of both direct and market-based policies. The model is incorporated into a normative theoretical analysis and serves as a basis for structural...

We characterize the political equilibrium in a game in which the use of a natural resource is controlled by a hybrid policy that integrates a uniform price and user-specific quotas. Because lower quotas reduce the benefits of the resource users from a lowered price, and a higher price diminishes...