Price ceilings and firm-specific quantity restrictions in posted-offer markets
Abstract
The effect of price ceilings and quantity controls in experimental posted-offer markets on market efficiency and total output is compared. Quantity controls adversely affect market performance relative to price ceilings. In the quota experiments contract and total surplus realization is lower than under equivalent price controls. Welfare outcomes, in terms of market efficiency, for price ceilings and quantity controls in a market setting are not the same, at least in the short run. Different welfare outcomes from equivalent controls are attributed to the manner in which the price and quantity search space is âcensoredâ by the price and quantity controls.(This abstract was borrowed from another version of this item.)
Download Info
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic Info
Article provided by Elsevier in its journal Information Economics and Policy.
Volume (Year): 11 (1999)
Issue (Month): 4 (December)
Pages: 389-406
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505549
Related research
Keywords:Other versions of this item:
- Kujal, Praveen, 1999. "Price ceilings and firm-specific quantity restrictions in posted-offer markets," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/5331, Universidad Carlos III de Madrid.
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James T. Hong & Charles R. Plott, 1982. "Rate Filing Policies for Inland Water Transportation: An Experimental Approach," Bell Journal of Economics, The RAND Corporation, vol. 13(1), pages 1-19, Spring.
- M. L. Weitzman, 1973.
"Prices vs. Quantities,"
Working papers
106, Massachusetts Institute of Technology (MIT), Department of Economics.
- Weitzman, Martin L, 1974. "Prices vs. Quantities," Review of Economic Studies, Wiley Blackwell, vol. 41(4), pages 477-91, October.
- Kujal, Praveen, 1992.
"Asymmetric surplus distribution and the price convergence path in posted-offer markets : A note,"
Economics Letters,
Elsevier, vol. 39(1), pages 33-36, May.
- Kujal, Praveen, 1992. "Asymmetric Surplus Distribution and the Price Convergence Path in Posted Offer Markets: A Note," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/5329, Universidad Carlos III de Madrid.
- Isaac, R. Mark & Plott, Charles R., .
"Price Controls and the Behavior of Auction Markets: An Experimental Examination,"
Working Papers
253, California Institute of Technology, Division of the Humanities and Social Sciences.
- Isaac, R Mark & Plott, Charles R, 1981. "Price Controls and the Behavior of Auction Markets: An Experimental Examination," American Economic Review, American Economic Association, vol. 71(3), pages 448-59, June.
- McCabe, Kevin A. & Rassenti, Stephen J. & Smith, Vernon L., 1989. "Designing `smart' computer-assisted markets : An experimental auction for gas networks," European Journal of Political Economy, Elsevier, vol. 5(2-3), pages 259-283.
- Kujal, Praveen, 1994.
"Firm Specific Output Limits in a Posted Offer Market: Distributive and Efficiency Effects,"
Open Access publications from Universidad Carlos III de Madrid
info:hdl:10016/5330, Universidad Carlos III de Madrid.
- Kujal, Praveen, 1994. "Firm-specific output limits in a posted offer market: Distributive and efficiency effects," Journal of Economic Behavior & Organization, Elsevier, vol. 25(2), pages 257-269, October.
- Davis, Douglas D & Holt, Charles A, 1998. "Conspiracies and Secret Discounts in Laboratory Markets," Economic Journal, Royal Economic Society, vol. 108(448), pages 736-56, May.
- Douglas D. Davis & Charles A. Holt, 1994. "Market Power and Mergers in Laboratory Markets with Posted Prices," RAND Journal of Economics, The RAND Corporation, vol. 25(3), pages 467-487, Autumn.
- Plott, Charles R, 1983. "Externalities and Corrective Policies in Experimental Markets," Economic Journal, Royal Economic Society, vol. 93(369), pages 106-27, March.
Citations
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:eee:iepoli:v:11:y:1999:i:4:p:389-406For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.

