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The paper provides a tractable, analytical framework to study regulatory risk under optimal incentive regulation …. Regulatory risk is captured by uncertainty about the policy variables in the regulator's objective function: weights attached to … profits and costs of public funds. Results are as follows: 1) The regulator's reaction to regulatory risk depends on the …
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The paper provides a tractable, analytical framework to study regulatory risk. Regulatory risk is captured by … funds. Results are as follows: 1) The regulator's reaction to regulatory risk depends on the curvature of aggregate demand …. 2) It yields a positive information rent effect exactly when demand is convex. 3) Firms benefit from regulatory risk …
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This note revisits the problem of rent extraction in situations where agents are uncertain about the private information of others, represented by multiple probabilistic assessments. A generalization of convex independence (Crémer and McLean, 1985 and 1988) is necessary and sufficient for full...
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The paper provides a tractable, analytical framework to study regulatory risk. Regulatory risk is captured by … funds. Results are as follows: 1) The regulator's reaction to regulatory risk depends on the curvature of aggregate demand …. 2) It yields a positive information rent effect exactly when demand is convex. 3) Firms benefit from regulatory risk …
Persistent link: https://www.econbiz.de/10013160045