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Full-Text Articles in Law
How Applicable Is The Dominant Firm Model Of Price Leadership, Bart Wilson
How Applicable Is The Dominant Firm Model Of Price Leadership, Bart Wilson
Bart J. Wilson
No abstract provided.
Economics At The Pump, Bart Wilson, Cary Deck
Economics At The Pump, Bart J. Wilson, Cary A. Deck
Economics At The Pump, Bart J. Wilson, Cary A. Deck
Bart J. Wilson
Policymakers are often tempted to implement various new laws and regulations intended to prevent gasoline price gouging. We recently carried out economic experiments to test such anti-gouging measures as mandated divorcement and uniform pricing, and we found that those regulations actually harm consumers rather than help them. The reason is simple: The well-meaning interventions are designed to manipulate market allocations, but they backfire because they cannot account for the complex incentives in an intricate industry. Changing the rules alters the behavior of refiners and station owners, which is why the legislation does not have its intended effect on market outcomes.