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transaction-cost-political approaches. There has been some progress in recent years in developing such a "new economic theory of … federalism". Basic ideas and some insights of this theory are discussed with regard to the appropriate "federal" allocation of …
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We consider a vertically related market characterized by downstream imperfect competition and by the monopolistic provision of an essential facility-based input, whose price is set by a social-welfare maximizing regulator. Our model shows that the regulatory knowledge about the cost for...
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