The paper analyzes the effects of liberalization in increasing returns to scale industries. It studies the optimal regulation of an incumbent competing with an unregulated strategic competitor, when public funds are costly. The model shows a trade off between productive and allocative...

This paper analyzes conditions for strong rationality of the equilibrium in a linear/Gaussian model of a competitive commodity market, where firms are differentially informed about costs of production and the precision of private information is endogenously acquired. A Rational Expectations...

The clear definition of property rights is not a sufficient condition to prevent congestion effects in commons. In this paper we present how interesting can be the coordination among owners in the preservation of the common good. Our approach takes into account economic dynamics and incentive...

The clear definition of property rights is not a sufficient condition to prevent congestion effects in commons. In this paper we present how interesting can be the coordination among owners in the preservation of the common good. Our approach takes into account economic dynamics and incentive...

We consider a model of regulation for nonpoint source water pollution where farmersare heterogenous along two dimensions, their ability to transform inputs into finalproduction and the productive land they possess. Regulation takes place through nonlinear taxation/subsidization of agricultural...