The Investment Effects of Price Caps under Imperfect Competition: A Note

Stefan Bühler (), Anton Burger () and Robert Ferstl
Authors registered in the RePEc Author Service: Stefan Buehler

University of St. Gallen Department of Economics working paper series 2008 from Department of Economics, University of St. Gallen

Abstract: This note analyzes a simple Cournot model where firms choose outputs and capacities facing varying demand and price-cap regulation. We find that binding price caps set above long-run marginal cost increase (rather than decrease) aggregate capacity investment.

Keywords: capacity; investment; Cournot competition; price cap (search for similar items in EconPapers)
JEL-codes: D24 D43 L13 L51 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2008-08
New Economics Papers: this item is included in nep-mic and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://ux-tauri.unisg.ch/RePEc/usg/dp2008/DP-17-Bu.pdf (application/pdf)

Related works:
Journal Article: The investment effects of price caps under imperfect competition: A note (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:usg:dp2008:2008-17

Access Statistics for this paper

More papers in University of St. Gallen Department of Economics working paper series 2008 from Department of Economics, University of St. Gallen Contact information at EDIRC.
Bibliographic data for series maintained by Joerg Baumberger ( this e-mail address is bad, please contact ).