Regulating oligopolistic competition

• 成果类型: Article
• 署名作者: Yang, Kai Hao; Zentefis, Alexander K.
• 署名单位: Yale University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2023.105709
• 发表日期: 2023
• 关键词: Regulation; price caps; mechanism design

摘要

We consider the problem of how to regulate an oligopoly when firms have private information about their costs. In the environment, consumers make discrete choices over goods, and minimal structure is placed on the manner in which firms compete. In the optimal regulatory policy, firms compete on price margins, and based on firms' prices, the regulator charges them taxes or give them subsidies, and imposes on each firm a yardstick price cap that depends on the posted prices of competing firms. & COPY; 2023 Elsevier Inc. All rights reserved.