This paper analyzes the welfare effects of a public smoking ban in bars. We construct a model that captures crucial … features of bar life: competing bars, social interaction, and heterogenous preferences for a smoking ban. Smokers and non … the smoking regime strategically. Since the (dis)utility from smoking and social interaction are substitutes, the smoking …

paper we have accentuated the importance of quality regulation, which is a rather neglected field in the theory of … mechanism and Shleifer's yardstick Regulation. Unfortunately, in practical applications of these simple mechanisms the regulated … regulator must be extremely well-informed if he wants to apply this sort of regulation: except for the actual realizations of a …

; cost uncertainty ; Cournot competition ; First Best ; Second Best ; capacity obligations ; spot market regulation. …