Price Caps as Welfare-Enhancing Coopetition.

The paper analyzes the impact of price caps agreed upon by industry participants. Price caps, like mergers, allow firms to solve Cournot's multiple-marginalization problem, but unlike mergers, they do not stifle price competition in case of substitutes or facilitate foreclosure in case of complement...

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Bibliographic Details
Published in:Journal of Political Economy Vol. 127; no. 6; pp. 000 - 1
Main Authors: Rey, Patrick, Tirole, Jean
Format: Article
Published: University of Chicago Press Dec2019
Subjects:
Online Access:View this record in EBSCOhost