Rate of return or cost of service regulation was the traditional means by which governments, especially in the USA …, regulated profitability and prices in privately-owned public utility businesses. However, rate of return regulation was … the difficulties that their regulators perceive in operating profit and price regulation regimes. …

relationship between market structure and innovation, that is the effect of regulation on the incentives to innovate of a regulated … monopolistic firm. More precisely, we discuss the influence of price regulation on the economic incentives to undertake costly R …&D effort to discover a new technology. After a discussion of positive approaches to regulation and their relevance for the …

-of-return regulation is generally thought to result in overinvestment, while incentive regulation is believed to entail underinvestment …. Yet, previous empirical work has generally found that the introduction of incentive regulation has not systematically …-of-return regulation because investment decisions (what can be included in the rate base) are usually evaluated in a discretionary manner …

game, where firms lobby for regulation before they compete in the product market, we derive a testable measure of lobbying …

-of-return regulation is generally thought to result in overinvestment, while incentive regulation is believed to entail underinvestment …. Yet, previous empirical work has generally found that the introduction of incentive regulation has not systematically …-of-return regulation because investment decisions (what can be included in the rate base) are usually evaluated in a discretionary manner …