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This Policy Bulletin measures the gains to consumer welfare of the new "all distance"/"all you can eat" competition produced by the market-opening provisions of the Telecommunications Act of 1996. Analysis reveals that the consumer welfare gain amounts to approximately $10 billion per year, and...
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This paper studies how selling constraints, which refer to the inability of firms to attend to all the buyers who want to inspect their products, affect the equilibrium price and social welfare. We show that the price that maximizes social welfare is greater than the marginal cost. This is...
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deadweight loss associated with the patent system and discourage innovation by others. Economic efficiency is promoted if rewards … the patent system designed to spur innovation by better aligning the rewards and contributions of patent holders … the social benefits of their innovations if innovation is to be suitably rewarded and encouraged. However, this paper …
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