Please use this identifier to cite or link to this item:
http://dspace.mediu.edu.my:8181/xmlui/handle/10419/18452
Title: | A Modified Yardstick Competition Mechanism |
Keywords: | L11 L51 D40 ddc:330 regulation yardstick competition mechanism design information asymmetry |
Issue Date: | 16-Oct-2013 |
Publisher: | Deutsches Institut für Wirtschaftsforschung (DIW) Berlin |
Description: | This paper analyzes a modified yardstick competition mechanism (MYC), where the yardstick employed consists of a tariff basket and total costs. This mechanism has a significant information advantage: the regulator ?only? needs to observe total costs and output of all firms. The modified yardstick competition mechanism can ensure a socially optimal outcome when allowing for spatial and second degree price discrimination, without increasing the informational requirements. We also introduce regulatory lags in the model. A systematic comparison between the results of traditional yardstick regulation and modified yardstick regulation is carried out. Finally, we discuss the applicability of the mechanism. |
URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/18452 |
Other Identifiers: | http://hdl.handle.net/10419/18452 ppn:508572479 |
Appears in Collections: | EconStor |
Files in This Item:
There are no files associated with this item.
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.