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Globalization and the effect of interest group pressure on firm entry

Author

Listed:
  • Abdelhamid D. M.

    (Heriott-Watt University, UK)

  • Mokhtari M.

    (University of Maryland, College Pa rk, MD, 20742, USA)

Abstract

This paper challenges a substantial body of literature suggesting that regulators are often captured by the industries they control and therefore end up ignoring the interests of consumers. We present an analytical model examining the effect of international rivalry between regulators on firm-entry and consequent industry/market profits and product-pricing. Our analysis overturns previous findings and provides significant insight into whether strategic competition constrains regulators to pursue the public interest more effectively.

Suggested Citation

  • Abdelhamid D. M. & Mokhtari M., 2004. "Globalization and the effect of interest group pressure on firm entry," Higher School of Economics Economic Journal Экономический журнал Высшей школы экономики, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 8(4), pages 520-541.
    • Handle: RePEc:scn:025886:15740215
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