Government regulators often establish maximum prices for regulated services. This paper explains the proper economic … previously incurred that the regulation makes unrecoverable from the marketplace. Costs created by the regulation include … regulated prices is lower than stand-alone costs and the bound is higher than incremental costs. Cases discussed include …

Prices, and reduces price volatility. Our findings are important for emission trading schemes worldwide, such as California …

tradeoff. Market-based prices can provide incentives to allocate resources more efficiently and reduce costs, but the presence … dominates despite modest efficiency gains, leading to higher consumer prices. Deregulation does not necessarily reduce prices … and improve consumer welfare. Thus, regulated prices may be preferred to market-based prices when firms are capable of …