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We show in a simple model of entry with sunk cost, that a regulator prefers limiting the output, or capacity, of the incumbent firm rather than imposing a "Minimum Quality Standard" in order to help the entrant to provide high quality. As a by-product, our analysis makes a contribution to the...
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We study the equilibrium and its stability property in a duopoly market in which minimum quality standards (MQS) are …
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' switching costs and the technological choice of the incumbent firm. For example 'customer pays' regulation encourages an … consider the addition of a 'buy back' rule to standard incumbent-firm-pays regulation and show that this is always preferred to … standard firms-pay regulation. Buy-back rules dominate other standard regulatory rules when firms can price discriminate on the …
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industry ; access charge ; manipulation of accounting ; regulation …
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nondiscrimination regulation that forces the ISP to provide an equal quality upgrade to both CPs, however, can reduce the ISP …
Persistent link: https://www.econbiz.de/10012158085
then reduces maximum pollution per unit of products sold in the market. In the duopoly case, this leads to increased …
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Regulation and competition policy are two alternative modalities by which the state intervenes in the market. In order … varieties of market failures and identify those for which regulation is best address (cooperation failures such as The Fishing … various industrial organizations (monopoly, duopoly, Walrasian limit) under the symmetric Cournot competition. We also deal …
Persistent link: https://www.econbiz.de/10011635985