IDEAS home Printed from https://ideas.repec.org/a/kap/regeco/v12y1997i1p81-89.html
   My bibliography  Save this article

The Efficiency Gains from Deregulation

Author

Listed:
  • Poitras, Marc
  • Sutter, Daniel

Abstract

We analyze the efficiency gains from deregulating monopolies using an equilibrium rent seeking model. McCormick, Shughart and Tollison (1984) argue that the initial effort to establish regulation dissipates the monopoly profit, limiting the gain from deregulation to the efficiency cost of monopoly. We establish conditions under which this proposition holds; in particular, the initial rent seekers must fail to anticipate the possibility of deregulation. Additionally, through application of the standard rent seeking model, we establish that the potential welfare gains exceed the cost of achieving deregulation. Our results provide support for policies aimed at eliminating monopoly and other types of economic distortion. Copyright 1997 by Kluwer Academic Publishers

Suggested Citation

  • Poitras, Marc & Sutter, Daniel, 1997. "The Efficiency Gains from Deregulation," Journal of Regulatory Economics, Springer, vol. 12(1), pages 81-89, July.
    • Handle: RePEc:kap:regeco:v:12:y:1997:i:1:p:81-89
    as

    Download full text from publisher

    File URL: http://journals.kluweronline.com/issn/0922-680X/contents
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kang, Jae Hyeong & Lee, Sanghack, 2001. "The social cost of entry contest in Cournot-Nash oligopoly," Journal of Economics and Business, Elsevier, vol. 53(2-3), pages 139-152.
    2. Lee, Sanghack & Cheong, Kiwoong, 2005. "Rent dissipation and social benefit in regulated entry contests," European Journal of Political Economy, Elsevier, vol. 21(1), pages 205-219, March.
    3. Barrachina, Alex & Forner-Carreras, Teresa, 2022. "Market must be defended: The role of counter-espionage policy in protecting domestic market welfare," Information Economics and Policy, Elsevier, vol. 58(C).
    4. Chi-Chih Lin, 2016. "Can Total Deregulation Be A Better Option Than Partial Deregulation?," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(04), pages 1-16, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:regeco:v:12:y:1997:i:1:p:81-89. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.