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. 2014 Nov 25;9(11):e113894. doi: 10.1371/journal.pone.0113894

Table 2. The effects of price regulation in the form Inline graphic, i.e. the price is set 40% lower than the optimal monopolistic price.

(1) (2) (3) (4) (5) (6) (7) (8)
h P* Inline graphic Inline graphic Inline graphic Inline graphic Inline graphic Inline graphic
0.10 0.97 0.0069 5.98 0.0581 24.38 8.37 56.71
0.20 0.93 0.0061 5.70 0.0534 23.73 8.79 57.16
0.30 0.88 0.0052 5.42 0.0484 23.04 9.25 57.64
0.40 0.82 0.0044 5.13 0.0430 22.31 9.78 58.10
0.50 0.75 0.0036 4.85 0.0372 21.54 10.37 58.60
0.60 0.66 0.0028 4.55 0.0310 20.71 11.05 59.09
0.70 0.55 0.0020 4.25 0.0242 19.84 11.84 59.57
0.80 0.41 0.0013 3.95 0.0169 18.90 12.75 60.08
0.90 0.24 0.0006 3.65 0.0088 17.91 13.83 60.59

In this case the decrease in revenues is 3%–6% (see column 4), much more substantial relative to the case shown in Table 1. While the increase in consumer surplus is also larger (6), the ratio between the consumer surplus increase and the revenue decrease is lower than in the case of Inline graphic (compare column (7) with column (7) in Table 1).