consumers' preferences. -- Optimal incentive regulation ; regulatory risk ; procurement ; information rents …The paper provides a tractable, analytical framework to study regulatory risk under optimal incentive regulation … curvature of the aggregate demand function. 2) It yields a positive information rent effect exactly when demand is convex. 3 …

. 2) It yields a positive information rent effect exactly when demand is convex. 3) Firms benefit from regulatory risk … prefer regulatory risk and these preferences may contradict both the firm's and consumers'. -- optimal incentive regulation … ; regulatory risk ; benevolent regulators ; information rents …

The properties of information, including "information uncertainty", can be understood only Bayesianly. Common … formulations that define information uncertainty in terms of just statistical "precision" (i.e. sampling variance), or any one … estimator characteristic (e.g. bias), are inadequate for generalized Bayesian analysis. Methods that deny information a Bayesian …