Similar Search Results

Irreversible investments and regulatory risk

Panteghini, Paolo; Scarpa, Carlo - 2003

This paper addresses the issue of how regulatory constraints affect firm s investment choices when the firm has an option to delay investment. The RPI-x rule is compared to a profit sharing rule, which increases the x factor in case profits go beyond a given level. It is shown that a pure price...

Persistent link: https://www.econbiz.de/10011507879

Investment size and firm's value under profit sharing regulation

Moretto, Michele; Panteghini, Paolo; Scarpa, Carlo - 2003

In this article we analyse the effects of different regulatory schemes (price cap and profit sharing) on a firm s investment of endogenous size. Using a real option approach in continuous time, we show that profit sharing does not affect a firm s start-up decision relative to a pure price cap...

Persistent link: https://www.econbiz.de/10011509471

The Regulation of Interdependent Markets

Fiocco, Raffaele; Scarpa, Carlo - Sonderforschungsbereich 649: Ökonomisches Risiko, … - 2011

centralized regulation is preferable. Under asymmetric informa- tion about the firms' costs, lobbying induces a unique regulator …

Persistent link: https://www.econbiz.de/10009228711

The regulation of markets with interdependent demands

Fiocco, Raffaele; Scarpa, Carlo - In: Information Economics and Policy 27 (2014) C, pp. 1-12

(imperfect) substitutes and can engage in lobbying activities. Under centralized regulation, a single regulator is established …, whose mandate is to maximize aggregate welfare. Under decentralized regulation, each firm is assigned to a regulator charged … with maximizing the welfare generated by that firm. With asymmetric cost information, centralized regulation results in a …

Persistent link: https://www.econbiz.de/10010786505

Regulation at home, competition abroad: A theoretical framework

Calzolari, Giacomo; Scarpa, Carlo - 2001

This paper analyses in a hidden characteristic set-up the design of the optimal price for a firm which is a monopolist at home but competes abroad against foreign firms. As long as diseconomies of scope are not too strong, the optimal price is identified. The price rule depends on the sign of...

Persistent link: https://www.econbiz.de/10011608801

Investment Size and Firm's Value Under Profit Sharing Regulation

Moretto, Michele; Panteghini, Paolo M.; Scarpa, Carlo - 2003

In this article we analyse the effects of different regulatory schemes (price cap and profit sharing) on a firm's investment of endogenous size. Using a real option approach in continuous time, we show that profit sharing does not affect a firm's start-up decision relative to a pure price cap...

Persistent link: https://www.econbiz.de/10011325118

On regulation and competition: Pros and cons of a diversified monopolist

Scarpa, Carlo; Calzolari, Giacomo - 2009

We study the regulation of a firm which supplies a regulated service while also operating in a competitive, unregulated … (with price and quantity competition) and optimal regulation that involves an informational externality to the competitors …. Although joint conduct of the activities generates scope economies, it also entails private information, so that regulation is …

Persistent link: https://www.econbiz.de/10010279549

The regulation of interdependent markets

Fiocco, Raffaele; Scarpa, Carlo - 2011

that centralized regulation is preferable. Under asymmetric information about the firms' costs, lobbying induces a unique …

Persistent link: https://www.econbiz.de/10010281488

Restructuring Italian Utility Markets: Household Distributional Effects

Valbonesi, Paola; Miniaci, Raffaele; Scarpa, Carlo - 2005

Competition in public utility sectors has been encouraged in recent years throughout Europe. In this paper we try and analyse the welfare effects of these reforms in Italy, with particular attention to water and energy goods. The first step is to introduce a sensible measure of affordability of...

Persistent link: https://www.econbiz.de/10010312543

Irreversible Investments and Regulatory Risk

Panteghini, Paolo M.; Scarpa, Carlo - 2003

This paper addresses the issue of how regulatory constraints affect firm's investment choices when the firm has an option to delay investment. The RPI-x rule is compared to a profit sharing rule, which increases the x factor in case profits go beyond a given level. It is shown that a pure price...

Persistent link: https://www.econbiz.de/10010315790