This paper provides a novel rationale for the regulation of market size when heterogeneous firms compete. A regulator seeks to maximize total welfare by choosing the number of firms allowed to enter the market, e.g. by issuing a certain number of licenses. Opening up the market for more firms...

This paper provides a novel rationale for the regulation of market size when heterogeneous firms compete. A regulator seeks to maximize total welfare by choosing the number of firms allowed to enter the market, e.g. by issuing a certain number of licenses. Opening up the market for more firms...

Chapter 1. Introduction -- Chapter 2. Rationality of choices made by individual consumer -- Chapter 3. Rationality of choices made by groups of consumers -- Chapter 4. Rationality of choices made by individual producers -- Chapter 5. Rationality of choices made by groups of producers by...