An instructional exercise in price controls: Product quality, misallocation, and public policy

Dennis L. Weisman, Shane D. Sanders, Mantobaye Moundigbaye

Research output: Contribution to journalArticlepeer-review

Abstract

A price control policy has several potential effects upon market welfare. These include deadweight loss, surplus transfer from producer to consumer, misallocative cost, and quality degradation. The present article provides accessible pedagogical models with which to incorporate the former two issues into a welfare analysis of price control. The analysis allows students to form a more complete understanding of price control policies.

Original languageEnglish (US)
JournalJournal of Industrial Organization Education
Volume6
Issue number1
DOIs
StatePublished - Dec 1 2012
Externally publishedYes

Keywords

  • Misallocation
  • Price controls
  • Product quality

ASJC Scopus subject areas

  • Business and International Management
  • Education
  • Industrial relations

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