Post by Economic Modelling

#JustPublished Hidden costs of entry regulation in vertical oligopolies and the crowding-out effect on entrepreneurs #Authors: Jing Ge (China University of Geosciences (Beijing)) Ruiming Liu (Renmin University of China) Boyang Zhou (Renmin University of China) #Highlights: • A vertical oligopoly model with scarce entrepreneurial talent is developed. • Upstream market power generates firms' relative excess entry in laissez-faire. • Entry regulation creates monopoly rents and attracts entrepreneurial talent into non-productive queuing. • Government failure can outweigh market failure regulations' corrective aims. • Downstream entry regulation is less effective than upstream entry regulation. #PaperLink: https://lnkd.in/eXbfp9R8