Article (Scientific journals)
Regulation under Financial Constraints
Gautier, Axel
2004In Annals of Public and Cooperative Economics, 75 (4), p. 645-656
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Keywords :
Regulation; asymmetric information; monopolist; developing countries
Abstract :
[en] This article studies a simple procurement problem (Laffont and Tirole, 1993) where the regulator faces a cash-in-advance constraint. The introduction of such a constraint not only reduces the amount of public good provided but also limits the instruments available to the regulator. The wealth constraint could change the optimal regulatory contract from a two-part tariff, where the quantities produced depend on the firm's cost, to a less efficient fixed fee where the firm produces the same quantity whatever its cost.
Disciplines :
Microeconomics
Author, co-author :
Gautier, Axel  ;  Université de Liège - ULiège > HEC-Ecole de gestion : UER > Economie industrielle
Language :
English
Title :
Regulation under Financial Constraints
Publication date :
2004
Journal title :
Annals of Public and Cooperative Economics
ISSN :
1370-4788
eISSN :
1467-8292
Publisher :
Blackwell Publishing
Volume :
75
Issue :
4
Pages :
645-656
Peer reviewed :
Peer Reviewed verified by ORBi
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since 02 April 2010

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