Schober, Dominik; Schaeffler, Stephan; Weber, Christoph - In: Journal of Regulatory Economics 46 (2014) 2, pp. 123-151
We analyze the treatment and impact of idiosyncratic or firm-specific risk in regulation. Regulatory authorities regularly ignore firm-specific characteristics, such as size or asset ages, implying different risk exposure in incentive regulation. In contrast, it is common to apply only a single...