This chapter reviews recent theoretical work on the design of regulatory policy, focusing on
the complications that arise when regulated suppliers have better information about the …

The last thirty years have witnessed a fundamental change in the regulation of infrastructure
industries. Whereas firms were subject to rate of return regulation and protected from entry in …

Price cap regulation (PCR) has now been employed in the telecommunications industry for
more than a quarter century. We review the experience with PCR and offer an explanation …

This paper finds that coherent regulatory policies can boost investment in network industries
of OECD economies. Rate-of-return regulation is generally thought to result in over …

When a commodity market relies upon a regulated network service industry—eg,
telecommunications, electricity, or natural gas transmission—economic efficiency in that …

Incumbent firms operating in today's local telephone industry are beginning to face
competition from new entrants. Using the dominant-firm/competitive-fringe framework and a …

Price cap regulation (PCR) has experienced widespread adoption in the US
telecommunications industry, but not in the electricity sector. We suggest that these …

The capital intensive network industries such as electricity and gas delivery infrastructures
exhibit natural monopoly characteristics because of their high economy of scale relative to …

This study examines the relationship between competition and investment by Incumbert
Local Exchange Carriers (ILECs) in US telecommunications markets. A panel data model …

By the year 2000, over 75 percent of the state public utility commissions in the United States
had selected price-cap regulation to constrain the operations of the major telephone …