Ignoring Spillover Effects of Airport Regulation.

Theoretical standard models and regulatory actions often ignore that firms are competing with other firms in related markets. In these contexts, cross-price relationships should be taken into account. The usual instinct with muitiproduct firms would be to use Ramsey prices to find optimal markups. H...

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Publicado en:Journal of Transport Economics & Policy Vol. 47; no. 3; pp. 387 - 398
Autores principales: Alves, Carlos, Barbot, Cristina
Formato: Artículo
Publicado: Liverpool University Press / Journals Sep2013
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Ignoring Spillover Effects of Airport Regulation.
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          Alves, Carlos
          Barbot, Cristina
        affil: CEF.UP, Faculdade de Economia, Universidade do Porto, Rua Dr. Roberto Frias, 4200-464 Porto, Portugal
      su:
        Competitive advantage in business
        Antitrust law
        Price regulation
        Elasticity (Economics)
        Demand function
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          Competitive advantage in business
          Antitrust law
          Price regulation
          Elasticity (Economics)
          Demand function
      ab: Theoretical standard models and regulatory actions often ignore that firms are competing with other firms in related markets. In these contexts, cross-price relationships should be taken into account. The usual instinct with muitiproduct firms would be to use Ramsey prices to find optimal markups. However, this is only applicable in situations with independent demand functions. Literature mostly covers cases where the regulated firm is a natural monopoly and therefore faces a budget constraint. This paper aims to provide conditions under which optimal price caps are set whenever there are related markets and the regulated firm is not a natural monopoly.
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    language: English
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