Regulating a multiproduct and multitype monopolist
نویسندگان
چکیده
I study the optimal regulation of a rm producing two goods. The rm has private information about its cost of producing either of the goods. I explore the ways in which the optimal allocation di¤ers from its one dimensional counterpart. With binding constraints in both dimensions, the allocation involves distortions for the most e¢ cient producers and features overproduction for some less e¢ cient types. JEL: D82, L21, Asymmetric Information, Multi-dimensional Screening, Regulation.
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