"Estache, Laffont, and Zhang develop a model to analyze the effects of asymmetric information on optimal universal service policy in the public utilities of developing countries. Optimal universal service policy is implemented using two regulatory instruments pricing and network investment....

Estache, Laffont, and Zhang develop a model to analyze the effects of asymmetric information on optimal universal service policy in the public utilities of developing countries. Optimal universal service policy is implemented using two regulatory instruments - pricing and network investment....

This paper develops a simple model in which the government has asymmetric information about a monopolistic firm's marginal costs of providing an infrastructure service. The model is used to analyze the impact of asymmetric information and the threat of regulatory capture on optimal universal...