Hawdon, David; Hunt, Lester C; Levine, Paul; Rickman, Neil - Surrey Energy Economics Centre (SEEC), School of Economics - 2005
This paper examines optimal price (i.e. ‘sliding scale’) regulation of a monopoly when productivity and managerial effort are not observed. We show how to operationalise this model of incentive regulation and use actual data from electricity distribution in England and Wales to make welfare...