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Recovery of stranded costs is perhaps the most litigious issue encountering regulators in promoting competition in United States and European utility industries. We build a dynamic model of Cournot competition which takes into account a particular regulatory mechanism regularly employed in...
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Quality competition, by increasing sunk costs, may produce levels of concentration even higher than expected in its absence. Based on Sutton's model of endogenous sunk costs and quality competition, we show that consumers, under certain conditions, may benefit from higher industry concentration...
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welfare in a price regulated duopoly with symmetric locations. In contrast to other studies on mixed oligopolies, this paper … shows that in a duopoly with regulated prices privatisation of the public hospital may increase overall welfare depending on … oligopoly ; price regulation ; quality ; hospital competition …
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