What is Jean Tirole's central theory on market power?
My central theoretical contribution lies in understanding the complexities of market power and the design of optimal regulation in imperfect markets. Instead of relying on simplistic assumptions, I model the strategic behavior of firms and the regulator, considering factors like information, commitment, and dynamic interactions. The goal is to identify the most effective regulatory instruments – price controls, quantity restrictions, information disclosure, or even market structure interventions – to align private incentives with social welfare.
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