Este artículo establece que cuando los precios de la energía son regulados usando peakload pricing, los costos del sistema de transmisión deben recaer sobre quienes se benefician de él. La transmisión cumple tres funciones: transportar energía, sustituir

Policy makers in different parts of the world are paying more attention to environmental markets (i.e., tradeable emission permits markets) as an alternative to the traditional command-and-command control approach of setting uniform emission and technology standards. I extend the basic (perfect...

Policy makers in different parts of the world are paying more attention to environmental markets (i.e., tradeable permits markets) as an alternative to the traditional command-and-command control approach of setting uniform emission and technology standards. I extend the basic (perfect...

Colombia adopted a health care system with regulated competition in the interaction of several markets: insurance, medical services, hospitalization and drugs. In this regulatory scheme, a collegiate body and two central dependencies of the executive branch intervene. Overall, the regulation...

This paper considers the costs of reducing consumption of goods by making their production illegal and punishing illegal producers. We use illegal drugs as a prominent example. We show that the more inelastic either demand for or supply of goods is, the greater the increase in social cost from...

Business leaders, government officials, and academics are focusing considerable attention on the concept of "corporate social responsibility" (CSR), particularly in the realm of environmental protection. Beyond complete compliance with environmental regulations, do firms have additional moral or...

Because the patent system is nowadays under criticisms, it is legitimate to question whether patents provide the best incentive mechanism for innovation. Wouldn?t it be preferable to base incentives on a reward system? This is the question addressed in this article, first in a general...

The reform of Patent Law in Europe is an old project. It started with the creation of the European Patent in 1973, but it has now been put to a halt because European States do not manage to implement new reforms. The goal of this article is to present the economic issues underlying these reforms...

This paper investigates the design of incentives in a dynamic adverse selection framework when agents’ production technologies display learning effects and agents’ rate of learning is private knowledge. In a simple two-period model with full commitment available to the principal, we show...