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This paper examines the effects of a competitive fringe on a regulated firm. Using Hart's (1983) model, we show that competition weakens the managerial incentives for cost reduction: when there is correlation between the cost levels of the firms in the industry, costs are higher in the regulated...
Persistent link: https://www.econbiz.de/10005067523
competitor. We show that this mechanism is welfare improving but it generates inefficient entry. That is a more efficient …
Persistent link: https://www.econbiz.de/10010263090
This paper examines the publication of quality indicators in service markets with public finance systems, such as education and healthcare markets. We provide a spatial model of product differentiation in which the reporting of such indicators increases consumers' decision weight on quality...
Persistent link: https://www.econbiz.de/10012405657
This paper questions whether competition can replace sector-specific regulation of mobile telecommunications. We show …
Persistent link: https://www.econbiz.de/10010320053
stimulates market entry and broadband penetration and/or leads to an increase in broadband quality. In contrast to what is … entry as well as investments that substantially increase service quality. Thus this open access policy does not contribute …
Persistent link: https://www.econbiz.de/10011505950
. Small, less productive, entrepreneurs, facing high entry costs, start informally, waiting to become more productive before …
Persistent link: https://www.econbiz.de/10012598217
. Small, less productive, entrepreneurs, facing high entry costs, start informally, waiting to become more productive before …
Persistent link: https://www.econbiz.de/10011989235
relationship between regulation, firm dynamics and entrepreneurship. We identify some foundational considerations relevant to this …
Persistent link: https://www.econbiz.de/10011276098
This paper discusses work on computable models of entry into regulated markets. Cournot, Stackelberg and Fringe entry … desirability of entry. The simulation results illustrate that welfare optimal component pricing can be highly sensitive to model … component price) exists. In addition, the welfare desirability of entry is seen to be sensitive to the choice of welfare …
Persistent link: https://www.econbiz.de/10009275844
competitor. We show that this mechanism is welfare improving but it generates inefficient entry. That is a more efficient …
Persistent link: https://www.econbiz.de/10004968359