In this paper, we find that the idea of using optional two-part tariffs as a basis for tariff renegotiations in a bilaterally monopoly setting is a solution to the double marginalization problem that theoretically (1) creates a stable equilibrium, (2) at the overall efficient level, (3) without...

Denna rapport presenterar resultaten från en enkätstudie som syftade till att kartlägga förekomsten och val av, samt motiv och syften med, modeller för internprissättning i svenska börsnoterade företag. Enkäter skickades ut till 110 slumpmässigt valda svenska börsnoterade företag,och...

Internprissättningsproblemet i dess vedertagna betydelse är problemet att få två resultatenheter inom samma organisation som handlar med varandra att agera utifrån hela organisationens bästa, trots att de är fullständigt målstyrda och endast bedöms utifrån sitt eget resultat. Detta...

This paper aims at developing the theoretical understanding of revenue capping as a way of regulating monopolistic firms. It is shown that the fact that a standard monopolist regulated by a fixed revenue cap will raise its price above the unregulated monopoly level is robust to two-part pricing....

One anonymous mechanism for monopoly regulation is the Chord-approximation Adjustment Process, CAP, suggested by Vogelsang (1988) where the change in consumer surplus is approximated as an average between a Laspeyres and a Paasche index. The main drawback of this method is an incentive for...

Revenue capping is a common way to regulate monopolistic utilities. A common suggestion when the revenue cap is cost based is that the regulator needs to determine the revenue cap so that both fixed and variable cost components as closely as possible match the true cost of the monopoly. In this...

The performance assessment model for grid companies which is currently being developed by The Swedish Energy Agency has been subject to criticism in different aspects by the grid companies. This paper reports the findings from a survey where the grid companies’ attitudes towards the...

Dejong et.al. (1989) and Avila & Ronen (1999) conduct experimental tests of various transfer pricing mechanisms. The resulting quantity data is transformed to efficiency measures which the authors analyse primarily through t-tests and analyses of variance. The problem in both experiments is that...

The Swedish Energy Agency is currently developing a performance assessment model for grid companies. The model relates total revenue to a standard cost based on a fictitious grid. This paper discusses a major theoretical disadvantage of this regulation principle, i.e. that the short and long...

This paper analyzes the incentive effects of a hybrid revenue cap on a regulated monopolistic firm using non-discriminatory two-part pricing. It is shown that the fixed and the variable part of the cap have different meanings in terms of regulation -- the fixed part of a hybrid revenue cap...