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Wohlfahrtsgewinne durch Preisregulierung?

In: List Forum Band 34

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  • Torsten Steinrücken
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    Abstract

    The article shows that a price regulation can have consequences on a monopolist's advertisement expen-diture. Due to the fact that a price regulation limits the free choice of both instruments price and adver-tisement, the enterprise is forced to use the two parameters in a suboptimal ratio. A simple model shows that a price decrease by price regulation diminishes ceteris paribus the advertising volume. Hence, it can make sense from a welfare-point of view to regulate prices less intensively in order to obtain the market-extending effect of advertisement. (Original text only available in german language)

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    This chapter was published in:

  • List Gesellschaft e.V., 2008. "List Forum Band 34," List Forum, List Gesellschaft e.V., edition 1, volume 1, number 34 edited by List Gesellschaft e.V., December.
    This item is provided by List Gesellschaft e.V. in its series List Forum Chapter with number 34-04.

    Handle: RePEc:lst:lfchap:34-04

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