We study the regulation of a utility firm which is active in a competitive unregulated sector as well. If the firm … and quantity competition) and also optimal regulation. Accounting for the several effects of regulation on the unregulated … market, we show the existence of an informational externality, in that regulation provides useful information to the rival …

The paper studies the impact of government budget constraint in a pure adverse selection problem of monopoly regulation … to regulation is proposed in which firms are free to enter the market and to choose their price and output levels … than traditional regulation where governments commit to both investment and operation cash-flows. This is especially …

zero output values without losing its flexibility properties. The tests shed light on the respective roles of regulation …

We analyze the design of optimal regulation of a domestic monopolist that also competes in an unregulated foreign … market. We show how foreign activities by the regulated firm affect domestic regulation, consumers’ surplus and firm …