Globalization and the effect of interest group pressure on firm entry

Abdelhamid D. M. and Manouchehr Mokhtari
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Abdelhamid D. M.: Heriott-Watt University, UK

Higher School of Economics Economic Journal Экономический журнал Высшей школы экономики, 2004, vol. 8, issue 4, 520-541

Abstract: This paper challenges a substantial body of literature suggesting that regulators are often captured by the industries they control and therefore end up ignoring the interests of consumers. We present an analytical model examining the effect of international rivalry between regulators on firm-entry and consequent industry/market profits and product-pricing. Our analysis overturns previous findings and provides significant insight into whether strategic competition constrains regulators to pursue the public interest more effectively.

Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:scn:025886:15740215

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