IDEAS home Printed from https://ideas.repec.org/a/bpj/jioedu/v6y2012i1p1-21n6.html
   My bibliography  Save this article

An Instructional Exercise in Price Controls: Product Quality, Misallocation, and Public Policy

Author

Listed:
  • Weisman Dennis L.

    (Kansas State University)

  • Sanders Shane D.
  • Moundigbaye Mantobaye

    (Western Illinois University)

Abstract

A price control policy has several potential effects upon market welfare. These include deadweight loss, surplus transfer from producer to consumer, misallocative cost, and quality degradation. The present article provides accessible pedagogical models with which to incorporate the former two issues into a welfare analysis of price control. The analysis allows students to form a more complete understanding of price control policies.

Suggested Citation

  • Weisman Dennis L. & Sanders Shane D. & Moundigbaye Mantobaye, 2012. "An Instructional Exercise in Price Controls: Product Quality, Misallocation, and Public Policy," Journal of Industrial Organization Education, De Gruyter, vol. 6(1), pages 1-21, December.
  • Handle: RePEc:bpj:jioedu:v:6:y:2012:i:1:p:1-21:n:6
    as

    Download full text from publisher

    File URL: https://www.degruyter.com/view/j/jioe.2012.6.issue-1/1935-5041.1043/1935-5041.1043.xml?format=INT
    Download Restriction: no

    References listed on IDEAS

    as
    1. Yang-Ming Chang & Bhavneet Walia, 2007. "Wage discrimination and partial compliance with the minimum wage law," Economics Bulletin, AccessEcon, vol. 10(4), pages 1-7.
    2. repec:ebl:ecbull:v:10:y:2004:i:9:p:1-7 is not listed on IDEAS
    3. Jamie Brown Kruse & Ozlem Ozdemir & Mark A. Thompson, 2005. "Market Forces and Price Ceilings: A Classroom Experiment," International Review of Economic Education, Economics Network, University of Bristol, vol. 4(2), pages 73-86.
    4. repec:ebl:ecbull:v:10:y:2007:i:4:p:1-7 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:jioedu:v:6:y:2012:i:1:p:1-21:n:6. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla). General contact details of provider: https://www.degruyter.com .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.