Authorities often lack information for efficient regulation of the commons. This paper derives a criterion comparing … significant impact. Finally, either regulatory instrument may induce the highest technology investment levels. …

to invest compared to autarky. The investment levels remain inefficient though. With generation facilities over-investment … occurs sometimes, while systematic under-investment occurs for transportation facilities. Free-riding reduces the incentives … investment. …

-of-return regulation because investment decisions (what can be included in the rate base) are usually evaluated in a discretionary manner …This paper finds that coherent regulatory policies can boost investment in network industries of OECD economies. Rate …-of-return regulation is generally thought to result in overinvestment, while incentive regulation is believed to entail underinvestment …

’s investment of endogenous size. Using a real option approach in continuous time, we show that profit sharing does not affect a … total investment. We also evaluate the reduction in the firm’s value due to profit sharing, linking this reduction to the …

This paper addresses the issue of how regulatory constraints affect firm’s investment choices when the firm has an … option to delay investment. The RPI-x rule is compared to a profit sharing rule, which increases the x factor in case profits … go beyond a given level. It is shown that a pure price cap and profit sharing are identical in their impact on investment …

paradox, and also show how it may be avoided by introducing a commitment device. …

the role of long-run and short-run price stickiness under discretion and commitment in a straightforward and intuitive way … when a commitment to hold nominal rates at zero for an extended period is optimal. We then introduce government spending …