Price Control Effectiveness in the Context of a Supply Chain

The imposition of price controls on a well-functioning competitive market is usually considered harmful to society since it reduces the volume of trade and creates incentives to waste resources. Generally, regulation and control of non-competitive markets in a supply chain environment are very difficult tasks, since the source that maintains and accelerates monopoly induced price increases is unclear.

This present paper deals with the case of an entire supply chain with several stations when the economic environment is under a monopoly or duopoly regime and price control in such an environment can be a very useful and corrective policy that may lead to a higher degree of efficiency along with desired redistributional influences.