Price regulation in a spatial duopoly with possible non-buyers

Auteur :
HINLOOPEN, J.

Description :
Minimum differentiation is never total-surplus-maximizing nor desired by firms. In most cases the regulator sets a price below that maximizing industry profits. For a substantial range of market configurations the regulated (first-best) price exceeds marginal cost. This induces firms to serve a larger part of the market.


Type de document :
Article de périodique

Source :
The Annals of regional science, issn : 0570-1864, 2002, vol. 36, n°. 1, p. 19-39, Collation : Illustration, Références bibliographiques : 12 ref.

Date :
2002

Editeur :
Pays édition : Allemagne, Berlin, Springer