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8,000<br />

7,800<br />

7,600<br />

7,400<br />

7,200<br />

7,000<br />

6,800<br />

6,600<br />

6,400<br />

6,200<br />

6,000<br />

Comparing Social Wefare in Differentiated Nash in Quantities Markets<br />

with Fixed Costs<br />

5. Excess pricing &<br />

captured entry reg.<br />

1. Fair pricing &<br />

fair or free entry<br />

2. Excess pricing &<br />

fair entry reg.<br />

6. Excess princing &<br />

free entry<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 />

Captured Excess<br />

Pricing (CEP)<br />

Variable Fair Cost-<br />

Based Pricing<br />

(RVFP)<br />

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

Health Economics, Elsevier, forthcoming.

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