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The Pennsylvania Liquor Control Board administers the purchase and sale of wine and spirits and is mandated to charge a uniform 30% markup on all products. We use an estimated discrete choice model of demand for spirits, together with information on wholesale prices, to assess the implications...
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This paper examines price level regulation in two-sided markets with linear demands. We find that (i) price level … regulation increases the price allocation asymmetry when reservation prices differ between the two sides of the market; and (ii … gains from price level regulation are relatively modest for a wide range of cost parameters …
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regulation. The profit-sharing rule is a key element of the price choice and our analysis focuses on the two most common ones …. Then, customer-owned firms, like forprofit ones, need some external price regulation. In the second part we address this … customerowned ones, and hence price regulation is affected by the ownership mode. Another factor that is shown to condition the …
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