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