Regulating a multiproduct and multitype monopolist
Dezsoe Szalay ()
Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems from Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich
I study the optimal regulation of a firm producing two goods. The firm has private information about its cost of producing either of the goods. I explore the ways in which the optimal allocation differs from its one dimensional counterpart. With binding constraints in both dimensions, the allocation involves distortions for the most efficient producers and features overproduction for some less efficient types.
JEL-codes: D82 L21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-com, nep-cta, nep-ind, nep-mic and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:trf:wpaper:397
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