Reference : Regulation under Financial Constraints
Scientific journals : Article
Business & economic sciences : Microeconomics
http://hdl.handle.net/2268/6996
Regulation under Financial Constraints
English
Gautier, Axel mailto [Université de Liège - ULiège > HEC-Ecole de gestion : UER > Economie industrielle >]
2004
Annals of Public and Cooperative Economics = Annales de l'Economie Publique, Sociale et Coopérative
Blackwell Publishing
75
4
645-656
Yes (verified by ORBi)
International
1370-4788
[en] Regulation ; asymmetric information ; monopolist ; developing countries
[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.
Researchers ; Professionals
http://hdl.handle.net/2268/6996
10.1111/j.1467-8292.2004.00266.x

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