5 Pages Posted: 26 Mar 2004
Date Written: March 2004
This note considers a simple Hotelling model with Bertrand competition between two firms, who belong to separate jurisdictions and are regulated by separate regulators. Welfare properties of different regulatory regimes are compared. These suggest that the presence of multiple, mutually competing, regulators may decrease overall welfare.
Keywords: Cross-border regulation, competing regulators
JEL Classification: L51, F0
Suggested Citation: Suggested Citation