This paper contributes a theoretical analysis of the effects of different types of regulation on the timing of monopoly … base, we distinguish between price-based regulation and cost-based regulation. Under cost-based regulation, investment … triggers a change of regulated prices, whereas, under price-based regulation, investment does not affect them. To motivate …

We compare two instruments to regulate a monopoly that has private information about its demand: fixing the price or … explore what proportion of welfare gains achievable by sophisticated regulation can be secured using simpler mechanisms and … also discuss the case regarding private information about the monopoly's costs …

CAPEX-bias occurs when the OPEX solution is the more efficient approach, but regulation sets distorted incentives to choose …

We consider the regulation of a monopoly facing consumers that may evade payments, an important issue in public … utilities. To maximize total surplus, the regulator sets the price and socially costly transfers, ensuring that the monopoly …

This paper shows with a formal model that under monopoly regulation, OPEX-risk can be a source for a CAPEX-bias. If …-OPEX-CAPEX- share (FOCS) which is a variation of TOTEX-regulation and second, OPEX-mark-up. FOCS internalizes the CAPEX-bias and can be …

Consider a bottleneck monopoly whose access charge is regulated above marginal cost and provides access to an oligopoly …

a rent-seeking contest. The propositions are derived from a model of monopoly rent-seeking where firms are assumed to …-seeking rivals are differentially situated in terms of the ease with which monopoly can be obtained. The paper considers a special … case where an incumbent in a monopoly franchise conferred by a governmental body enjoys a unique comparative advantage in …