Optimal Regulatory Lag under Price Cap Regulatio
We present an model of monopoly regulation in which the probability of cost being low rather than high depends on the firm's effort. The regulator chooses price and regulatory lag (i.e., the length of time until the next price review) to maximize welfare subject to an expected break-even constr...
| Main Authors: | , , |
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| Format: | Working paper |
| Language: | English |
| Published: |
CESifo
1991
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