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This paper studies the pricing incentives of a monopolist constrained by a revenue cap endogenously determined by her costs in a so-called base year. Such regulation is employed, among others, to govern electricity distribution operators in Germany. We show that the revenue cap may incentivize...
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corporate monopoly power. Findings Results show that China’s manufacturing monopoly enterprises are generally innovation …-oriented rather than rent-seeking. However, there are certain differences between diversified types of monopoly enterprises: the ones … for diversified types of monopoly enterprises, and do so in a targeted manner fully reflecting the containment of rent …
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