Can Firms Favor Location Regulation?

IF 2.7 3区 经济学 Q2 ECONOMICS Managerial and Decision Economics Pub Date : 2025-01-09 DOI:10.1002/mde.4461
Dang-Long Bui
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Abstract

Government regulations are believed to confine targeted firms' economic power, leading to a decline (rise) in producer (consumer) surplus. This paper explores the implications of location regulation in a spatially discriminatory pricing model with homogeneous products and linear transportation costs. Contrary to conventional wisdom, location regulation benefits (harms) producers but harms (benefits) consumers when firms engage in quantity (price) competition. Next, under location regulation, Bertrand firms are less (more) dispersed than Cournot firms if the transport rate is high (low). I also extend the analysis by comparing location and price regulations, as well as considering product differentiation and quadratic transportation costs.

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企业能支持地点监管吗?
政府法规被认为限制了目标企业的经济实力,导致生产者(消费者)剩余减少(增加)。本文探讨了在同质产品和线性运输成本的空间歧视性定价模型中,区位调控的影响。与传统观点相反,当企业从事数量(价格)竞争时,位置监管对生产者有利(损害),但对消费者不利(损害)。其次,在区位管制下,如果运输率高(低),贝特兰公司比古诺公司分散得更少(更多)。我还扩展了分析,比较了地理位置和价格规则,并考虑了产品差异化和二次运输成本。
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来源期刊
CiteScore
1.40
自引率
18.20%
发文量
242
期刊介绍: Managerial and Decision Economics will publish articles applying economic reasoning to managerial decision-making and management strategy.Management strategy concerns practical decisions that managers face about how to compete, how to succeed, and how to organize to achieve their goals. Economic thinking and analysis provides a critical foundation for strategic decision-making across a variety of dimensions. For example, economic insights may help in determining which activities to outsource and which to perfom internally. They can help unravel questions regarding what drives performance differences among firms and what allows these differences to persist. They can contribute to an appreciation of how industries, organizations, and capabilities evolve.
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