Price ceilings and firm-specific quantity restrictions in posted-offer markets
AbstractThe 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.
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Bibliographic InfoArticle provided by Elsevier in its journal Information Economics and Policy.
Volume (Year): 11 (1999)
Issue (Month): 4 (December)
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Web page: http://www.elsevier.com/locate/inca/505549
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.
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