Networks in decline: should price regulation be abolished?

• Type: Article in International Scientific Journal
• Date: 2020-02-03

Authors

Paula Sarmento (Author) FEP; António Brandão (Author) FEP

Journal

Title: International Journal of the Economics of Business

Vol. 27 No. 3

Pages: 377-389

ISSN: 1357-1516

Publisher: Taylor & Francis

Indexing

ISI Web of Knowledge - 0 Citations

Scopus - 0 Citations

Other information

Authenticus ID: P-00R-PQ5

DOI: 10.1080/13571516.2020.1718472

Abstract (EN): Some utilities such as postal services, gas and electricity are facing significant decline in demand within several of their business segments. In this context, an important matter for regulators, firms and consumers is to consider if maintaining price regulation is welfare enhancing compared with the no regulation alternative. From a model with one firm that is simultaneously monopolist in a regulated market and is in competition in a liberalized market, we conclude that welfare can be higher when price regulation is preserved.

Type (Professor's evaluation): Scientific

Notes: Published online: 03 Feb 2020