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Rent Extraction through Alternative Forms of Competition in the Provision of Paternalistic Goods
Joint Authors
Levaggi, Laura
Levaggi, Rosella
Source
Issue
Vol. 2012, Issue 2012 (31 Dec. 2012), pp.1-15, 15 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2012-12-31
Country of Publication
Egypt
No. of Pages
15
Main Subjects
Abstract EN
We compare the properties in terms of rent extraction of spatial competition and monopoly franchises using Dutch first price auctions, two of the most widely used tools to regulate public service provision.
In a framework where the regulator can imperfectly observe costs, but the latter are not necessarily private information to each competitor, spatial competition is more effective in extracting rent if providers are very different in their productivity and if they can observe the costs of their competitors.
When they are quite similar and have limited information on the competitors' characteristics, the use of a monopoly franchise through an auction mechanism should be preferred.
In the latter environment, a multiple object auction allows more rent to be extracted from the provider.
American Psychological Association (APA)
Levaggi, Laura& Levaggi, Rosella. 2012. Rent Extraction through Alternative Forms of Competition in the Provision of Paternalistic Goods. ISRN Economics،Vol. 2012, no. 2012, pp.1-15.
https://search.emarefa.net/detail/BIM-491826
Modern Language Association (MLA)
Levaggi, Laura& Levaggi, Rosella. Rent Extraction through Alternative Forms of Competition in the Provision of Paternalistic Goods. ISRN Economics No. 2012 (2012), pp.1-15.
https://search.emarefa.net/detail/BIM-491826
American Medical Association (AMA)
Levaggi, Laura& Levaggi, Rosella. Rent Extraction through Alternative Forms of Competition in the Provision of Paternalistic Goods. ISRN Economics. 2012. Vol. 2012, no. 2012, pp.1-15.
https://search.emarefa.net/detail/BIM-491826
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-491826