In this paper we tie together the two literatures of durable goods monopoly and exhaustible resource pricing. We show that the intertemporal no-arbitrage condition that arises if the durable good monopolist seller can commit to a price path mirrors the intertemporal no-arbitrage condition if the...

A major issue within the realm of Antitrust policy is the regulation of existing monopolies. We describe a new potential indirect scheme for regulating a natural monopoly that arises from high entry cost. The approach involves minimal government intervention, and it is based on encouraging entry...