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This paper models investment/entry decisions in a competitive industry that is subject to a quantity control on an … that liberalizing the quantity control could reduce investment in the industry under certain circumstances. Furthermore …, the level of investment is quite different when licenses are tradable than when they are not. Key factors in the …
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We analyze the market dynamics that are caused by tariff-rate quotas, particularly the effects of quota license allocation between heterogeneous commodities at the tariff line level. The allocation is endogenously modeled with a mixed complementarity problem approach for the case of the...
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In this paper, we consider a market where potential firms, which are allowed to be asymmetric, can freely enter and exit, and the total output would be socially excessive without any regulation. The effects of two alternative regulatory policies in the market: the individually transferable quota...
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