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We consider the effects of a one-sided price regulation of one of two complementary inputs. The provider of the regulated input is a domestic firm, while the provider of the other input is a foreign firm. This describes the market structure for several digital information and communication...
Based upon a narrative policy analysis, the aim of this paper is to answer two questions: (1) Why did the EU re-introduce import quotas on Chinese textile and clothing exports in 2005 after promising to lift them? (2) Why did the EU (partly) abolish these quotas a couple of months later? The...
Monopoly prices are too high. It is a price level problem, in the sense that the relative mark-ups have Ramsey optimal proportions, at least for independent constant elasticity demands. I show that this feature of monopoly prices breaks down the moment one demand is replaced by the textbook...
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