The authors take a simple, well-known macroeconomic model and treat it as a gam e between two players-the government and an all-embracing union. The payoffs have the form of a prisoner's dilemma. The equilibrium outcom e produces unwanted inflation and is not Pareto optimal. This is desp ite the...

There has been considerable interest in access rates in Australia since the development of National Competition Policy. This paper provides a framework for analysing the different situations in which access is an appropriate policy tool. It argues that access does not necessarily raise welfare...