Amador, Manuel; Bagwell, Kyle - In: Theoretical economics : TE ; an open access journal in … 17 (2022) 4, pp. 1719-1760
We analyze the Baron and Myerson (1982) model of regulation under the restriction that transfers are infeasible … conditions under which optimal regulation takes the form of price-cap regulation. We establish conditions under which the optimal … these conditions fail. We also provide conditions for the optimality of price-cap regulation when an ex post participation …