We analyse the effects of different regulatory schemes (price cap and profit sharing) on a firm's investment of …-up investment relative to a pure price cap scheme. Profit sharing does not necessarily affect total investment either, if the … optimally trigger tighter regulation: profit sharing should be less stringent in sectors where there are bigger investment …

’s investment of endogenous size. Using a real option approach in continuous time, we show that profit sharing does not affect a … total investment. We also evaluate the reduction in the firm’s value due to profit sharing, linking this reduction to the …

’s investment of endogenous size. Using a real option approach in continuous time, we show that profit sharing does not affect a … total investment. We also evaluate the reduction in the firm’s value due to profit sharing, linking this reduction to the …

A real options market model is developed, which derives the firms' optimal investment and disinvestment thresholds … flexibility is gained. For example, different market interventions can be integrated and their effects on the firms' investment … numerically replicating the optimality property of myopic planning. According to the results, production ceilings and investment …

This paper investigates the incentives to invest in improving the quality (as distinguished to investment in a new … activity) in telecommunication industry using the empirical example of wireless markets. We highlight that investment … incentives are positively related to the potential for technical progress. They also depend on market structure, competition …