AbstractWe analyze a model of repeated franchise bidding for natural monopoly with contestable licensing - a franchisee halds an (exclusive) license to operate a franchise until another rm offers to pay more for it. In a world where quality is observable but not veri able, the simple regulatory scheme we describe combines market-like incentives with regulatory oversight to generate efficient outcomes.
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Bibliographic InfoPaper provided by University of Vienna, Department of Economics in its series Vienna Economics Papers with number 0004.
Date of creation: Jul 2000
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Web page: http://www.univie.ac.at/vwl
Other versions of this item:
- Zvika Neeman, 2000. "Contestable Licensing," Econometric Society World Congress 2000 Contributed Papers 1430, Econometric Society.
- D42 - Microeconomics - - Market Structure and Pricing - - - Monopoly
- D45 - Microeconomics - - Market Structure and Pricing - - - Rationing; Licensing
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
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