Abstract
Utilizing a general equilibrium framework, this paper studies the economic effects of price regulation in competitive market structures. The analysis considers both the short-run and long-run implications of price regulation upon factor rewards and allocaticns and upon the production of quality. It also characterizes the adjustment path to a competitive long-run equilibrium. The positive relation between regulated price and the production of quality is described, and the identification of who gains and who loses and how resource allocations are affected is shown to depend upon factor intensity rankings.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
