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We consider a model featuring a single-product natural monopoly, which faces evaders, i.e., individuals that may not pay the price. By exerting a costly effort, the firm can deter evasion. To maximize the total surplus, a regulator sets the price, the level of deterrence effort, and socially...
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We consider the regulation of a monopoly facing consumers that may evade payments, an important issue in public …
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mechanism and Shleifer's yardstick Regulation. Unfortunately, in practical applications of these simple mechanisms the regulated … regulator must be extremely well-informed if he wants to apply this sort of regulation: except for the actual realizations of a … regulated public utility. This is the main reason why in practice the simple $RPI - X$ regulation prevails. Finally, in this …
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costs in a so-called base year. Such regulation is employed, among others, to govern electricity distribution operators in …. A connected set of price caps exists so that a hybrid regulation consisting of any element in this set and the cost …
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