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Allocation of Scarce Resources

In: Oligopoly, Auctions and Market Quality

Author

Listed:
  • Krishnendu Ghosh Dastidar

    (Jawaharlal Nehru University)

Abstract

In chapter 2 we discuss the problem of allocation of scarce resources (like radio spectrum or coal). How should the government in an emerging economy allocate such a scarce resource? Note that in emerging economies this is an extremely important policy issue. Conventional wisdom suggests that auctions are probably superior to administrative mechanisms as total welfare is likely to be higher with auctions. We demonstrate this need not be true in a multimarket oligopoly set-up. This has serious policy implications in emerging economies.

Suggested Citation

  • Krishnendu Ghosh Dastidar, 2017. "Allocation of Scarce Resources," Economics, Law, and Institutions in Asia Pacific, in: Oligopoly, Auctions and Market Quality, chapter 0, pages 29-74, Springer.
    • Handle: RePEc:spr:eclchp:978-4-431-55396-0_2
    DOI: 10.1007/978-4-431-55396-0_2
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