The Franchise Bidding Solution


Franchise bidding has been proposed as a tool to avoid regulation failures in natural monopoly sitations. The main idea is to replace competition in the market with competition for the market. However, this solution is not so simple to apply in practice and plagued by its own failures. Join Stephane Saussier for an introduction to franchise bidding and its limits, based on the work of Demsetz, Williamson and other prominent economists.


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