Kidokoro, Y. - Institute of Social and Economic Research (ISER), Osaka … - 1997
We buid a simple model of commuter railways where congestion exists, show that price-cap (PC) regulation causes … congestion compared to rate-of-return (ROR) regulation. We next consider methods to correct it, and show the following results …: (i) PC regulation, in which the cap is made contingent on congestion, can correct the congestion without distorting cost …