Author: David S. SilbyPublisher:
ISBN:
Category : Industrial policy
Languages : en
Pages : 44
Book Description
The Dynamics of Price Adjustment in Regulated Industries
Author: David S. SilbyPublisher:
ISBN:
Category : Industrial policy
Languages : en
Pages : 44
Book Description
Industry Structure and the Dynamics of Price Adjustment
Author: Anindya BanerjeePricing in Regulated Industries
Author: John T. WendersPublisher:
ISBN:
Category : Public utilities
Languages : en
Pages : 140
Book Description
Expanding Competition in Regulated Industries
Author: Michael A. CrewPublisher: Springer Science & Business Media
ISBN: 1475731922
Category : Business & Economics
Languages : en
Pages : 216
Book Description
Expanding Competition in Regulated Industries reviews the changing regulatory environment, notably incentive regulation and competition in regulated industries. Some of the major changes in electricity, gas, and telephone utilities allow for competition in local service through unbundling. This book is of interest to researchers, utility managers, regulatory commissions, and the Federal Government.
Regulatory Restructuring and Incumbent Local Exchange Pricing
Author: Christopher R. KnittelPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
While the Telecommunications Act of 1996 introduces competition into local telephone markets at a national level, prior to the Act many states had already restructured their regulatory methods. In particular, many states allowed for competition in both local service and "local long distance" markets prior to 1996. In addition to the expansion of competition, there has been an increased use of price regulation (price caps and price freezes), rather than traditional cost based regulatory methods in determining and updating rates for local exchange and local long distance toll services. Using a three-dimensional panel data set, I investigate whether price regulation and differences in entry conditions in local exchange and local long distance toll markets have had an impact on rate changes for residential local service, business local service, and local long distance toll service for the incumbent local exchange companies. In doing so, I estimate an empirical model that accounts for the stickiness of rates in regulated industries. The model, based on (S,s) models that have developed in a number of literatures, treats firms as maximizing expected profits in the price adjustment costs and regulatory uncertainty resulting from rate hearings, and regulators as controlling profits in the presence of adjustment costs. I find that competition has prompted a significant amount of rate rebalancing that has reduced the amount of cross-subsidization present in these markets. In addition, the findings suggest that price cap regulation leads to higher rates, relative to rate-of-return regulation.
Dynamic Model of the Regulated Firm with a Price Adjustment Mechanism
Author: Carleton University. Department of EconomicsPublisher: Ottawa, Carleton U., Department of Economics
ISBN:
Category : Business enterprises
Languages : en
Pages : 30
Book Description
Price Regulations and Price Adjustment Dynamics
Author: Evanthia FasoulaDynamics of Price Regulation
Author: Gary BiglaiserPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
We study the dynamics of price regulation for an industry adjusting to exogenous technological progress. First, we characterize the optimal capacity path and replacement cycles in a neoclassical investment model. Second, we show that naive rate-of-return regulation, which ignores components of economic depreciation, eventually results in a deficient level of capacity due to excessively high retail prices burdened by the need to recover the underdepreciated costs of historical investments. Third, we explain how price-cap regulation leads to more efficient capital replacement decisions compared to naive rate-of-return regulation, and we show how finite price-cap horizons distort capital replacement decisions compared to optimal regulation. Finally, we interpret recent regulatory reforms in telecommunications markets.
Political Price Cycles in Regulated Industries
Author: Rodrigo MoitaPublisher: INTERNATIONAL MONETARY FUND
ISBN: 9781451865202
Category : Business & Economics
Languages : en
Pages : 0
Book Description
This paper develops a model of political regulation in which politicians set the regulated price in order to maximize electoral support by signaling to voters a pro-consumer behavior. Political incentives and welfare constraints interact in the model, yielding an equilibrium in which the real price in a regulated industry may fall in periods immediately preceding an election. The paper also provides empirical support for the theoretical model. Using quarterly data from 32 industrial and developing countries over 1978-2004, we find strong statistical and econometric evidence pointing toward the existence of electoral price cycles in gasoline markets.
Issues in Regulation by Price Adjustment
Author: James Walter HagermanPublisher:
ISBN:
Category :
Languages : en
Pages : 206
Book Description