The Investment Effects of Price Caps under Imperfect Competition. A Note.

Anton Burger, Stefan Bühler, Robert Ferstl

Publikation: Working/Discussion PaperWU Working Paper

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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.
OriginalspracheEnglisch
ErscheinungsortVienna
HerausgeberForschungsinstitut für Regulierungsökonomie, WU Vienna University of Economics and Business
PublikationsstatusVeröffentlicht - 2008

Publikationsreihe

ReiheWorking Papers / Research Institute for Regulatory Economics
Nummer2008,3

WU Working Paper Reihe

  • Working Papers / Research Institute for Regulatory Economics

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