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10000<br />

8000<br />

6000<br />

4000<br />

2000<br />

0<br />

-2000<br />

Comparing capture, welfare optimum and free entry in a differenciated Nash in<br />

quantities (Cournot) market with fixed costs<br />

Captured Entry<br />

Regulation<br />

Max PS<br />

Welfare<br />

Optimum Entry<br />

Max SW<br />

Free Entry<br />

Equilibrium<br />

PS > 0<br />

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24<br />

Number of competitors active in the market<br />

Producer<br />

Surplus<br />

Consumer<br />

Surplus<br />

Social<br />

Welfare<br />

Borrell, J. R. & C. Cassó ‘Pharmacies’ in A. Cutler (Ed) Encyclopedia of<br />

Health Economics, Elsevier, forthcoming.

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