Rent Extraction through Alternative Forms of Competition in the Provision of Paternalistic Goods

Figure 3

Total rent extraction comparison for the complete information case. Here 𝑧₀=9𝑠(−(1/2)+(1/6)(17𝑠+8𝜀)/𝑠), as derived in (B.2) in Appendix B. Since 𝜀≃0, one has 𝑧₀≃1.685𝑠.