When firms set prices and face entry costs, efficiency in production and in entry are not simultaneously achieved, generating the possibility that regulatory interventions can lead to efficiency enhancements. We show through the Bertrand model that in markets with public entry and regular...

We study a dominant firm Cournot oligopoly, with one low-cost firm and one or more high-cost firms. If equilibrium is interior, with all firms producing positive quantity, a reallocation of production relative to the equilibrium point, such that the low-cost firm produces more, while the...