Brekke, Kurt R.; Cellini, Roberto; Siciliani, Luigi; … - Department of Economics and Related Studies, University … - 2008
We investigate the effect of competition on quality in regulated markets (e.g., health care, higher education, public … drops to the minimum level in steady state, implying that quality competition is e¤ectively eliminated. In this case, static … models tend to exaggerate the positive effect of competition on quality. Our results can explain the mixed empirical evidence …