The superior incentive properties of price cap regulation (PCR) derive from breaking the link between revenues and costs which renders the regulated firm the residual claimant for its efficiency gains. Under the Hope standard, regulated firms are constitutionally protected against confiscatory...

This paper examines price level regulation in two-sided markets with linear demands. We find that (i) price level regulation increases the price allocation asymmetry when reservation prices differ between the two sides of the market; and (ii) changes in the level of the price cap are divided...

This paper integrates two separate branches of the law and economics literature to demonstrate the two-sided risk of market exclusion by a vertically-integrated firm (VIF) with upstream and downstream market power. The ratio of downstream (retail) to upstream (wholesale) price margins is key to...