TIGHTER AVERAGE REVENUE REGULATION CAN REDUCE CONSUMER WELFARE
UNSPECIFIED. (1995) TIGHTER AVERAGE REVENUE REGULATION CAN REDUCE CONSUMER WELFARE. JOURNAL OF INDUSTRIAL ECONOMICS, 43 (4). pp. 399-404. ISSN 0022-1821Full text not available from this repository.
A monopolist producing for two markets is subject to an average revenue constraint (ARC), a form of regulation which is relevant to some UK utilities. Where marginal costs of serving the two markets differ, tighter regulation may cause one of the prices to rise as shown by Bradley and Price . A simple linear example demonstrates that total consumer surplus may fall as regulation becomes more stringent.
|Item Type:||Journal Article|
|Subjects:||H Social Sciences > HG Finance
H Social Sciences > HC Economic History and Conditions
|Journal or Publication Title:||JOURNAL OF INDUSTRIAL ECONOMICS|
|Publisher:||BLACKWELL PUBL LTD|
|Number of Pages:||6|
|Page Range:||pp. 399-404|
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