In this paper we use data on the Norwegian bus transport industry to investigate the effects of different regulatory mechanisms and their economic implications. We develop a model that includes an efficiency parameter and a cost reduction effort variable, both of which enter the cost function,...

A parental seller with market power to some degree in its product market can earn rents. In this context, there is a gain to granting credit for the purchase of the product and thus the establishment of captive finance company for expanding the sales by offering loans to consumers who need...