Implementing Efficient Market Structure

Implementing Efficient Market Structure∗

This article studies the design of optimal mechanisms to regulate entry in natural oligopoly markets, assuming the regulator is unable to control the behavior of firms once they are in the market. We adapt the Clarke–Groves mechanism, characterize the optimal mechanism that maximizes the weighted sum of expected social surplus and expected tax revenue, and show that thesemechanisms generally av...

Auctions to implement the efficient market structure

We consider a regulator who does not know how many firms should be granted a license to enter a market as he has limited information on their setup costs. We propose two auction formats which implement the efficient market structure. One is called ”jumping English auction”, where the price for a license increases continuously most of the times, but jumps at pre-specified points. The other is ca...

Bank Performance: Market Power or Efficient Structure?

Regulatory change not seen since the Great Depression swept the U.S. banking industry beginning in the early 1980s, culminating with the Interstate Banking and Branching Efficiency Act of 1994. Significant consolidations have occurred in the banking industry. This paper considers the market-power versus the efficient-structure theories of the positive correlation between banking concentration a...

Market Structure and Price Adjustment in the Iranian Tea Market

efficient capital market hypothesis

the introductory issue of the journal of financial research contains six articles in farsi and one in english. it also offers a glossary of financial terminology. the first article deals with the efficient capital market hypothesis , and is authored by dr. ali jahankhani & hussein abdoh tabrizi. it explains the concept and theories of capital market efficiency and their historical development i...