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Product Quality Under Regulated Monopoly



A monopolist regulated via a price cap may well have an incentive to change other variables of interest to consumers, in an attempt to shift the cost and demand curves in his favour. This paper develops a model in which the monopolist can vary product quality and the terms of a warranty, in response to price regulation. The regulated and unregulated monopoly outcomes are compared with the Pareto-efficient outcome.

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  • Donald A R George, 1998. "Product Quality Under Regulated Monopoly," Edinburgh School of Economics Discussion Paper Series 4, Edinburgh School of Economics, University of Edinburgh.
  • Handle: RePEc:edn:esedps:4

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    Cited by:

    1. Müller, Gernot & Schäffner, Daniel & Stronzik, Marcus & Wissner, Matthias, 2006. "Indikatoren zur Messung von Qualität und Zuverlässigkeit in Strom- und Gasversorgungsnetzen," WIK Discussion Papers 273, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH.

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