We study a buyer's optimal investment strategy for new technologies when costs evolve stochastically and are private … leads to delays in investment compared to the real option benchmark. We also suggest a payment structure that implements the … buyer's optimal investment timing as a Vickrey-type auction …

Uncertainty in election outcomes generates politically induced regulatory risk. For monopoly regulation, political …

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 …

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

This study aims at characterizing the optimal regulation of risky activities when risk assessment is subjective as a …

We investigate the impact of regulatory risk on vertical integration and upstream investment by a regulated firm that … a regulatory policy that promotes the regulated firm's unobservable investment effort. We show that, when the regulator … ante socially beneficial. Regulatory risk makes vertical integration profitable and stimulates upstream investment at a …