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Do consumers benefit from tighter price cap regulation? (English) Zbl 0953.91027
Summary: This paper examines whether consumers necessarily benefit from tightening the price cap. We find that a tighter price cap always increases consumer welfare when demands are independent. Conversely, when demands are interdependent a tighter price cap may reduce consumer welfare.

MSC:
91B42 Consumer behavior, demand theory
91B24 Microeconomic theory (price theory and economic markets)
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