infrastructure quality. Analyzing a model with reduced-form demand, we first show that deregulating an integrated monopoly cannot … retail price and infrastructure quality relative to the integrated monopoly outcome increases welfare. Third, we argue that … ; deregulation ; investment incentives ; access charges ; regulation …

infrastructure quality. Analyzing a model with reduced-form demand, we first show that deregulating an integrated monopoly cannot … retail price and infrastructure quality relative to the integrated monopoly outcome increases welfare. Third, we argue that …

This paper studies the effect of soft-budget constraints in a pure adverse selection model of monopoly regulation. We … regulatory set-up in which firms are free to enter natural monopoly markets and to choose their price and output levels as in the …-up allows governments to avoid re-funding moneyloosing firms and that welfare is larger than under traditional regulation where …