Network losses and returns are importantissues for water resource management, that are addressed in thispaper by modeling the structure of production for municipal waterutilities with two outputs: water sold to final customers andwater network losses. We propose a measure of economies of scopeto...

We analyze the contract-based relationship between a local community and a private operator in charge of a water utility. An important feature of the regulation model is the existence of water network losses that may reduce the operator's cost. We derive solutions to the optimal contract both...

We consider the relationship between a localcommunity and a private operator in charge ofthe water utility. An important feature of themodel is the possibility of water networklosses that are costly to the operator. Wecompute the first-best and asymmetricinformation solutions to the optimal...