Rate of return or cost of service regulation was the traditional means by which governments, especially in the USA …, regulated profitability and prices in privately-owned public utility businesses. However, rate of return regulation was … the difficulties that their regulators perceive in operating profit and price regulation regimes. …

-of-return regulation is generally thought to result in overinvestment, while incentive regulation is believed to entail underinvestment …. Yet, previous empirical work has generally found that the introduction of incentive regulation has not systematically …-of-return regulation because investment decisions (what can be included in the rate base) are usually evaluated in a discretionary manner …

avoid the effects of regulation and, at the same time, to reinforce their dominant position and power. The thesis of the … where monopolists are more active and where regulation should be more effective. …

overinvestment. The last section will provide recommendations for a more efficient regulation. …

regulation in an effort to foster competition and improve efficiency. This paper focuses on the local exchange market and … examines the price markup before and after the implementation of price cap regulation to measure the effects of the change on … consumer welfare. The average price markup increased slightly after price cap regulation; however, the average price decreased …

associated with teledensity and operating efficiency while competition and price cap regulation are strongly positively … cap regulation has had on telecommunications market in Latin America. …