Regulation under Financial Constraints

[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 :

Issue :

Pages :

645-656

Peer reviewed :

Peer Reviewed verified by ORBi

Available on ORBi :

since 02 April 2010

Statistics

Number of views

113 (4 by ULiège)

Number of downloads

215 (2 by ULiège)

More statistics

Scopus citations^®

Scopus citations^®
without self-citations

OpenCitations

OpenAlex citations

publications

supporting

mentioning

contrasting

Smart Citations

Citing PublicationsSupportingMentioningContrasting

View Citations

See how this article has been cited at scite.ai

scite shows how a scientific paper has been cited by providing the context of the citation, a classification describing whether it supports, mentions, or contrasts the cited claim, and a label indicating in which section the citation was made.

Bibliography

BARON D.P. and MYERSON R.B., 1982, 'Regulating a monopolist with unknown costs', Econometrica, 50, 4, 911-930.
CHE Y.-K. and GALE I., 1998, 'Standard auctions with financially constrained bidders', Review of Economics Studies, 65, 1, 1-21.
COOK P., 1999, 'Privatization and utility regulation in developing countries: the lessons so far', Annals of Public and Cooperative Economics, 70, 4, 549-587.
LAFFONT J.-J., 2000, 'Regulation of infrastructures in developing countries'. In G. Kochendörfer and B. Pleskovic (eds), The Institutional Foundations of a Market Economy, Villa Borsing Workshop Series 2000, German Foundation for International Development.
LAFFONT J.-J., and Tirole J., 1993, A Theory of Incentives in Procurement and Regulation, MIT Press, Cambridge MA.
LEWIS T.R. and SAPPINGTON D.E.M., 2000, 'Motivating wealth-constrained actors' American Economic Review, 90, 4, 944-960.
THOMAS L., 2002, 'Non-linear pricing with budget constraint', Economics Letters, 75, 257-263.
World Bank, 2000, Entering the 21 st Century. World Development Report 1999/2000, Oxford University Press, New York.

Similar publications

Sorry the service is unavailable at the moment. Please try again later.