Price Caps in Multiprice Markets | Zendy

Oren BarGill | Zendy

AI Assistant Blog Pricing

Home ZAIA Blog

Open Access

Price Caps in Multiprice Markets

Author(s) -

Oren BarGill

Publication year - 2015

Publication title -

the journal of legal studies

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.251

H-Index - 61

eISSN - 1537-5366

pISSN - 0047-2530

DOI - 10.1086/684300

Subject(s) - legislator , mid price , economics , dimension (graph theory) , limit price , scope (computer science) , price mechanism , microeconomics , welfare , reservation price , market price , price level , factor price , monetary economics , market economy , legislation , law , mathematics , political science , computer science , pure mathematics , programming language

Many consumer markets feature a multidimensional price. A policy maker—a legislator, a regulator, or a court—concerned about the level of one price dimension may decide to cap this price. How will such a price cap affect other price dimensions? Will the overall effect be good or bad for consumers? For social welfare? Price caps can be beneficial when sellers set prices in response to consumers’ misperception. The scope for welfare-enhancing regulation depends on the type (and direction) of the underlying misperception and on market structure.

The content you want is available to Zendy users.

Already have an account? Click here to sign in.

Having issues? You can contact us here

Accelerating Research