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

Stefan Buehler, Anton Burger, Robert Ferstl

Publication: Working/Discussion PaperWU Working Paper

5 Downloads (Pure)


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)
Original languageEnglish
Place of PublicationVienna
PublisherForschungsinstitut für Regulierungsökonomie, WU Vienna University of Economics and Business
Publication statusPublished - 2008

Publication series

SeriesWorking Papers / Research Institute for Regulatory Economics

WU Working Paper Series

  • Working Papers / Research Institute for Regulatory Economics

Cite this