Buehler, Stefan and Burger, Anton and Ferstl, Robert (2008) The Investment Effects of Price Caps under Imperfect Competition. A Note. Working Papers / Research Institute for Regulatory Economics, 2008,3. Forschungsinstitut für Regulierungsökonomie, WU Vienna University of Economics and Business, Vienna.
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Abstract
This note analyzes a simple Cournot model where firms choose outputs and capacities facing varying demand and price-cap regulation. We find that binding price caps set above long-run marginal cost increase (rather than decrease) aggregate capacity investment. (author's abstract)
Item Type: | Paper |
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Keywords: | capacity / investment / Cournot competition / price cap |
Classification Codes: | JEL D24, D43, L13, L51; RVK QR 300 |
Divisions: | Forschungsinstitute > Regulierungsökonomie |
Depositing User: | Repository Administrator |
Date Deposited: | 29 Mar 2010 07:42 |
Last Modified: | 22 Oct 2019 00:41 |
URI: | https://epub.wu.ac.at/id/eprint/1766 |
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