Product Quality Under Regulated Monopoly

Donald George

Research output: Working paperDiscussion paper

Abstract

A monopolist regulated via a price cap may well have an incentive to changeother variables of interest to consumers, in an attempt to shift the cost and demandcurves in his favour. This paper develops a model in which the monopolist can varyproduct quality and the terms of a warranty, in response to price regulation. Theregulated and unregulated monopoly outcomes are compared with the Pareto-efficientoutcome.
Original languageEnglish
PublisherEdinburgh School of Economics Discussion Paper Series
Pages1-29
Number of pages29
Publication statusPublished - 21 Dec 1998

Publication series

NameELSE working papers
No.4

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