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- W3142017726 abstract "This paper proposes a generalization of Shleifer's (1985) model of yardstick competition, to a dynamic framework. Specifically, we consider a differential game and we show that the yardstick mechanism is effective to replicate the first-best solution if players adopt open-loop behaviour rules and they are symmetric at the initial time; in the absence of initial symmetry, the social efficiency is reached only in the asymptotic steady state. On the contrary, if players adopt Markovian behaviour rules, then the yardstick pricing rule is not able to achieve the first-best solution along the equilibrium path of any Markov Perfect Nash Equilibrium." @default.
- W3142017726 created "2021-04-13" @default.
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- W3142017726 date "2019-07-08" @default.
- W3142017726 modified "2023-09-27" @default.
- W3142017726 title "On the optimality of the yardstick regulation in the presence of dynamic interaction" @default.
- W3142017726 hasPublicationYear "2019" @default.
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