Strategic pricing and entry deterrence under proce cap regulation

Iozzi Alberto
CEIS Working Papers
This paper shows that dynamic price cap regulation allows the regulated firm to deter entry. Under dynamic price cap regulation, the allowed prices in each period are an increasing function of the prices set in the previous period. By setting a low price
Number: 130
Date: Friday 01 December 2000
Revision Date: Friday 01 December 2000