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A Posnerian Model of Entry into Regulated Markets

Author

Listed:
  • Chakravorti, B
  • Spiegel, Y

Abstract

In this paper we investigate why regulators may wish to open regulated markets to entry by unregulated firms. We adopt Posner's view of regulation as a taxation scheme, whereby regulators set high rates in some markets in order to subsidize other markets.

Suggested Citation

  • Chakravorti, B & Spiegel, Y, 1996. "A Posnerian Model of Entry into Regulated Markets," Papers 45-96, Tel Aviv - the Sackler Institute of Economic Studies.
  • Handle: RePEc:fth:teavsa:45-96
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    More about this item

    Keywords

    REGULATION ; BUSINESS ORGANIZATION ; MONOPOLIES;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation

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