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 costly transfers to ensure the monopoly’s participation. We obtain …

We consider the regulation of a monopoly facing consumers that may evade payments, an important issue in public … utilities. To maximize total surplus, the regulator sets the price and socially costly transfers, ensuring that the monopoly … breaks-even. With costly effort, the firm can deter evasion. Under unit demand and fixed quality, price is independent of …

We consider the regulation of a monopoly facing consumers that may evade payments, an important issue in public … utilities. To maximize total surplus, the regulator sets the price and socially costly transfers, ensuring that the monopoly … breaks-even. With costly effort, the firm can deter evasion. Under unit demand and fixed quality, price is independent of …

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 …

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 costly transfers to ensure the monopoly's participation. We obtain …

This paper studies the effect of soft-budget constraints in a pure adverse selection model of monopoly regulation. We … regulatory set-up in which firms are free to enter natural monopoly markets and to choose their price and output levels as in the …-up allows governments to avoid re-funding moneyloosing firms and that welfare is larger than under traditional regulation where …

market structures in the industry: integrated monopoly, vertical separation with free entry downstream, or liberalization … optimal regulatory policy awards a monopoly to a low-cost upstream firm, but requires free entry downstream if the monopolist …

the monopoly is not contestable, i.e. not controlled by a credible threat of entry, regulation is necessary. The essential …In some industries, monopoly is natural. One provider can serve the relevant demand cheaper than two or more firms. If … downstream markets are not themselves natural monopolies. The holder of the monopoly is also himself active on one of these …