Krishna, Kala M; Tan, Ling Hui; Ranjan, Ram - In: Contributions in Economic Analysis & Policy 3 (2004) 1, pp. 1-27
This paper models investment/entry decisions in a competitive industry that is subject to a quantity control, either on …/input. We show that liberalizing the quantity control could reduce investment in the industry under certain circumstances …. Furthermore, the level of investment in the industry is different depending on whether the licenses are tradable or not. Key …