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provide higher quality services to all consumers. The externality renders the market outcome inefficient. Price regulation …, price regulation should be accompanied by licensing arrangements that cap the number of experts in the market. Our theory … provides a novel rationale for the wide-spread use of price regulation and licensing in real-world markets for expert services. …
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We examine a deregulation of German pharmacists to assess its effects on retail and labor markets. Our theoretical model suggests that firms with high managerial efficiency open more stores per firm and have higher labor demand due to the reform. We find a sharp persistent increase in entry...
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theoretical and empirical literature on geographic regulation as well as practical cases. Based on this review it is suggested …
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