English, Article, Journal or magazine article edition: Incomplete contracting and price regulation Boes, Dieter

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Bookmark: http://trove.nla.gov.au/version/51983
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Incomplete contracting and price regulation
Author
  • Boes, Dieter
Physical Description
  • preprint
Notes
  • This paper deals with price regulation of a monopolistic distribution grid which sells a license to some retailer. The regulator aims at attaining efficient sale of the license and efficient relationship-specific investments of the agents. The first best can be attained by a sequential regulatory mechanism which gives the seller an option to grant the license but allows the buyer to make counteroffers. This sequential mechanism runs counter to the usual price-cap idea since possible upward but never downward renegotiation of the regulated prices is the vehicle to attain the first best.
  • Regulation, Incomplete contracts, Hold-up problem
  • RePEc:bon:bonsfa:593
Language
  • English
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