| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5062409 | Economics Letters | 2007 | 7 Pages |
Abstract
We investigate optimal quality provision, where quality is determined by congestion. Duopolists make congestion-reducing investments and then compete in prices. We find that an unregulated market leads to insufficient investment, and that price cap below the equilibrium price eliminates this inefficiency.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Toshihiro Matsumura, Noriaki Matsushima,