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Under ex ante access regulation entrants often claim that access fees are excessive. I show that this is only the case … strictly positive access fee which may exceed the efficient level. Ex post regulation facilitates this type of collusion and …
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We model entry by entrepreneurs into new markets in developing economies with regulatory barriers in the form of licence fees and bureaucratic delay. Because laissez faire leads to 'excessive' entry, a licence fee can increase welfare by discouraging entry. However, in the presence of a licence...
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