Brekke, Kurt R.; Cellini, Roberto; Siciliani, Luigi; … - Department of Economics and Related Studies, University … - 2008
We investigate the effect of competition on quality in regulated markets (e.g., health care, higher education, public utilities) taking a di¤erential game approach, in which quality is a stock variable. Using a Hotelling framework, we derive the open-loop solution (providers commit to an...