This paper addresses the issue of how regulatory constraints affect firm s investment choices when the firm has an … option to delay investment. The RPI-x rule is compared to a profit sharing rule, which increases the x factor in case profits … go beyond a given level. It is shown that a pure price cap and profit sharing are identical in their impact on investment …

investment of endogenous size. Using a real option approach in continuous time, we show that profit sharing does not affect a … total investment. We also evaluate the reduction in the firm s value due to profit sharing, linking this reduction to the …

This paper studies the investment decision by a monopolistic internet service provider (ISP) in different regulatory … nondiscrimination regulation that forces the ISP to provide an equal quality upgrade to both CPs, however, can reduce the ISP ….s investment incentive and social welfare. Furthermore, the investment level is higher if the regulated ISP is allowed to charge …

Authorities often lack information for efficient regulation of the commons. This paper derives a criterion comparing … significant impact. Finally, either regulatory instrument may induce the highest technology investment levels. …

This paper examines the investment incentives of market-based regulation, with focus on the technology characteristics … supply and strictly convex environmental damage, it is optimal to tax investment in technologies that induce large variance …

studies the impact of an urban land titling program on firm investment. It finds that the program leads to increased … investment rate for titling firms, and the positive effect holds only for politically connected firms. The effects are likely …

-tax country induces bunching. Such bunching promotes investment incentives in the low-tax as well as the high-tax country. In … equilibrium, affiliates might over-invest and the bunching-related investment effects generate a tendency for too high profit … investment incentives and transfer pricing induces inefficiently low taxes. …

taxes impair subsidiary-level investment efficiency. Consistent with internal agency conflicts between the central …-level investment efficiency while reducing the level of investment. Our paper provides timely empirical evidence to inform expectations …