The paper provides a tractable, analytical framework to study regulatory risk under optimal incentive regulation … consumers' preferences. -- Optimal incentive regulation ; regulatory risk ; procurement ; information rents …

prefer regulatory risk and these preferences may contradict both the firm's and consumers'. -- optimal incentive regulation …

Assets with a value of over $130billion are regulated in Australia. We define regulatory risk as being regulation that …

We analyze the treatment and impact of idiosyncratic or firm-specific risk in regulation. Regulatory authorities … regulation. In contrast, it is common to apply only a single benchmark, the weighted average cost of capital (WACC), uniformly to ….0 percentage points depending on the size of the firm (in the range of 3% to 40% of total cost of capital). Regulation of …

implications are higher the more heterogeneous the sector is. As an example, we use the Danish benchmarking regulation of the waste …