Cost-of-service regulation that reduces prices will also reduce incentives to control cost. Increased output … leaves a positive welfare gain when regulation reduces price by some percentage. To be useful to regulators, these … regulated industries, price must fall by half to outweigh cost increases of as little as 2%. Cost-of-service regulation appears …

-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 …

-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 …

to the implementation of different regulatory mechanisms (cost plus vs. incentive regulation) and also to firm ownership … subject to incentive regulation smooth their dividends less than firms subject to cost plus regulation but also present higher … target payout ratios; thus suggesting that incentive regulation leads firms to a dividend policy more responsive to earnings …

calculations and legal and regulatory requirements in the US are described, as are the implications for incentive regulation …

Hat die heutige Finanzmarktkrise instabile Marktmechanismen oder mangelnde Regulierung als Ursache? Christoph Kaserer … mittels Regulierung, Transparenz und Limitierung durch verstärkte Eigenkapitalunterlegungen zu erreichen. Roman Inderst …