Despite decades of research on mechanism design and on many practical aspects of cost-benefit analysis, one of the most basic and ubiquitous features of regulation as actually implemented throughout the world has received little theoretical attention: exemptions for small firms. These firms may...

This paper analyses how different types of access regulation to next generation networks affect investments and consumer welfare. The model consists of an investment stage with uncertain returns and subsequent quantity competition. The access price is a function of investment costs and the...

Recent rate increases by U.S. freight railroads have refocused attention on regulation, deregulation, and regulatory reforms in the railroad industry. Legislation introduced into Congress would render a variety of railroad behavior newly subject to the jurisdiction of the antitrust statutes,...

We propose a difference-in-differences (DiD) approach to estimate the impact of incentives on cost reduction. We show theoretically, and estimate empirically, that German electricity distribution system operators (DSOs) pile up more costs in the year used to determine future prices when subject...

Government regulators often establish maximum prices for regulated services. This paper explains the proper economic principles for establishing such constraints. The principles imply a range - an upper limit and a lower limit - that constrain the regulator's discretion. Principles emerging from...

Thinking about Ronald Coase, economists generally refer to transaction and social costs, to the importance of property rights and institutions or to the Coase-theorem. Examine his work more closely, a common feature takes shape behind these ideas, the public utilities. The constant and detailed...

Firms have incentives to influence regulators' decisions. In a dynamic setting, we show that a firm may prefer to capture regulators through the promise of a lucrative future job opportunity (i.e., the revolving-door channel) than through a hidden payment (i.e., a bribe). This is because the...

Die Liberalisierung und Regulierung der Telekommunikationsmärkte in Deutschland ist trotz einiger Widrigkeiten als großer Erfolg zu bezeichnen. Verbrauchern stehen, im Gegensatz zu den Zeiten des staatlichen Monopols, preisgünstige und innovative Produkte zur Verfügung. Im Zentrum der...

In Deutschland und auf europäischer Ebene wird aktuell eine Neufassung eisenbahnrechtlicher Zugangs-, Entgelt- und Entflechtungsbestimmungen erörtert. Zentraler Diskussionspunkt ist neben der Frage, ob die Entflechtung von Infrastruktur- und Verkehrsbetrieb erweitert werden sollte, vor allem...

Several decades of market opening has become a characteristic of network industries. Its main hindrances and aids has come into sight during this period. There is a need now to evaluate the process of market opening and to assess the steps to be taken. Market opening is usually measured by...