Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Friday, May 17, 2013

Regulating a multiproduct and multitype monopolist

Posted by D. Daniel Sokol

Dezso Szalay (University of Bonn) is Regulating a multiproduct and multitype monopolist.

ABSTRACT: I study the optimal regulation of a firm producing two goods. The firm has private information about its cost of producing either of the goods. I explore the ways in which the optimal allocation differs from its one dimensional counterpart. With binding constraints in both dimensions, the allocation involves distortions for the most efficient producers and features overproduction for some less efficient types.

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