A strategy to convert quotas to tariffs is to auction the quota rights and use the realized auction prices as guides to setting tariffs. In the 1980s, New Zealand employed auctions to allocate quota licenses. We analyze the relationship between tariff-equivalents and auction prices for auctions...

Public concern has been rising about whether market forces are sufficient to ensure the optimal choice of quality of services. We examine a model in which unregulated competition leads to an underprovision of quality from a social perspective and then study the effects of price regulation....

A single seller of an indivisible object wishes to sell the good to one of many buyers. The seller has zero value for the good, the buyers have a commonly known identical value of one. This article attempts to determine strategic environments that ensure the seller's ability to exploit the...