We examine the hold-up problem of price regulation and compare it with the monetary policy credibility problem. For …-up problem in regulation turns out to be more serious than the inflation bias problem in monetary policy. Even with far …

opportunities of firms. The detailed indicators refer to: economic regulation concerning market access, the use of inputs, output … choices, pricing and international trade and investment; administrative regulation (i.e. the interface between government …: while regulation for regular contracts has remained largely unchanged, many countries (especially in Europe) have eased …

A new perspevtive is provided on the under-investment problem in the regulation of a firm with market power. We compare … observe effective, although second-best, price regulation that both encourages socially optimal investment and ensures …