Given the political and public interest in rising industry concentration in developed economies, researchers have been working on uncovering underlying mechanisms and implications. Various causes of concentration have been proposed, although rarely tested in a comprehensive model. We study five...

Government regulators often establish maximum prices for regulated services. This paper explains the proper economic principles for establishing such constraints. The principles imply a range - an upper limit and a lower limit - that constrain the regulator's discretion. Principles emerging from...