Moretto, Michele; Panteghini, Paolo M.; Scarpa, Carlo - Dipartimento di Scienze Economiche "Marco Fanno", … - 2007
We analyse the effects of different regulatory schemes (price cap and profit sharing) on a firm's investment of …-up investment relative to a pure price cap scheme. Profit sharing does not necessarily affect total investment either, if the … optimally trigger tighter regulation: profit sharing should be less stringent in sectors where there are bigger investment …