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Direct regulations have two regimes. In one, all firms behave in the same manner and in the other they behave differently. Past work assumed all firms were identical, thereby neglecting the non-monotonicity in comparative statics arising from the regime change
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Direct regulations have two regimes. In one, all firms behave in the same manner and in the other they behave differently. Past work assumed all firms were identical, thereby neglecting the non-monotonicity in comparative statics arising from the regime change
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