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| Dublin Core |
PKP Metadata Items |
Metadata for this document |
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| 1. |
Title |
Title of document |
Regulating a monopolist with uncertain costs without transfers |
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| 2. |
Creator |
Author's name, affiliation |
Manuel Amador; Federal Reserve Bank of Minneapolis |
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| 2. |
Creator |
Author's name, affiliation |
Kyle Bagwell; Stanford University |
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| 3. |
Subject |
Subject(s) |
Regulation, price caps, delegation theory |
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| 3. |
Subject |
Subject classification |
L43, L5, D82 |
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| 4. |
Description |
Abstract |
We analyze the Baron and Myerson (1982) model of regulation under the restriction that transfers are infeasible. Extending techniques from the delegation literature to incorporate an ex-post participation constraint, we report sufficient conditions under which optimal regulation takes the form of price-cap regulation. We establish conditions under which the optimal price cap is set at a level such that no types are excluded and show that exclusion of higher cost types can be optimal when these conditions fail. We also provide conditions for the optimality of price-cap regulation when an ex post participation constraint is present and exclusion is infeasible. |
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| 5. |
Publisher |
Organizing agency, location |
Econometric Society |
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| 6. |
Contributor |
Sponsor(s) |
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| 7. |
Date |
(YYYY-MM-DD) |
2022-11-22 |
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| 8. |
Type |
Status & genre |
Peer-reviewed Article |
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| 8. |
Type |
Type |
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| 9. |
Format |
File format |
pdf
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| 10. |
Identifier |
Universal Resource Indicator |
https://econtheory.org/ojs/index.php/te/article/view/4691 |
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| 11. |
Source |
Journal/conference title; vol., no. (year) |
Theoretical Economics; Volume 17, Number 4 (November 2022) |
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| 12. |
Language |
English=en |
en |
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| 15. |
Rights |
Copyright and permissions |
Authors who publish in Theoretical Economics will release their articles under the Creative Commons Attribution-NonCommercial license. This license allows anyone to copy and distribute the article for non-commercial purposes provided that appropriate attribution is given. |