and capacity choices under demand uncertainty to describe how revised price structures for the substitutes for climate … make them difficult to adjust. Thus, excess demand will not be managed through price adjustment. This situation is … incentive based adaptation policy. The last part of the paper offers some empirical evidence on how the price elasticity of the …

Price cap regulation uses a formula, set in advance, to determine the price increases for a firm's services for a …. Customers can also benefit because the price cap formula may cause prices to rise less rapidly during the period. The sharpened … incentives created may encourage the firm to offer innovative new services. After the period ends, regulators may order price …