000			02878cam a22003617 4500
001			w16258
003			NBER
005			20211020111120.0
006			m o d
007			cr cnu||||||||
008			210910s2010 mau fo 000 0 eng d
100	1		_aSeim, Katja.
245	1	0	_aPublic Monopoly and Economic Efficiency: _bEvidence from the Pennsylvania Liquor Control Board's Entry Decisions / _cKatja Seim, Joel Waldfogel.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c2010.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w16258
500			_aAugust 2010.
520	3		_aWhile private monopolists are generally assumed to maximize profits, the goals of public enterprises are less well known. Using the example of Pennsylvania's state liquor retailing monopoly, we use information on store location choices, prices, wholesale costs, and sales to uncover the goals implicit in its entry decisions. Does it seek to maximize profits or welfare? We estimate a spatial model of demand for liquor that allows us to calculate counterfactual configurations of stores that maximize profit and welfare. We find that welfare maximizing networks have roughly twice as many stores as would maximize profit. Moreover, the actual network is much more similar in size and configuration to the welfare maximizing configuration. An alternative to a state monopoly would be the common practice of regulated private entry. While such regimes can give rise to inefficient location decisions, little is known about the size of the resulting inefficiencies. Even for a given number of stores, a simple characterization of free entry with our model results in a store configuration that produces welfare losses of between 3 and 9% of revenue. This is a third to half of the overall loss from unregulated free entry.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aL13 - Oligopoly and Other Imperfect Markets _2Journal of Economic Literature class.
690		7	_aL21 - Business Objectives of the Firm _2Journal of Economic Literature class.
690		7	_aL3 - Nonprofit Organizations and Public Enterprise _2Journal of Economic Literature class.
690		7	_aL81 - Retail and Wholesale Trade • e-Commerce _2Journal of Economic Literature class.
700	1		_aWaldfogel, Joel. _922560
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w16258.
856	4	0	_uhttps://www.nber.org/papers/w16258
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w16258
942			_2ddc _cW-PAPER
999			_c331864 _d290426