This chapter focuses on laboratory experimental examinations of a particular class of institutions, policies or mechanisms of monopoly control. These are mechanisms which take the existence of a monopoly as a given and ask how might the abuses of monopoly be controlled in a decentralized manner....

This article develops the theoretical properties of a new incentive mechanism for regulating a monopoly seller and reports the results of laboratory experimental tests of its behavioral properties. The design of the new mechanism draws upon the results of our earlier experimental research on the...