Pricing incentives under price-cap regulation

Autor:	R. Dean Foreman
Rok vydání:	1995
Předmět:	Scheme (programming language) Microeconomics Economics and Econometrics Incentive Price-cap regulation Economics Social Welfare Management Monitoring Policy and Law computer Weighted arithmetic mean computer.programming_language Weighting
Zdroj:	Information Economics and Policy. 7:331-351
ISSN:	0167-6245
DOI:	10.1016/0167-6245(95)00005-9
Popis:	In many price-cap regulation plans, such as those of AT&T and British Telecom, a weighted average of the prices for multiple services (baskets) must not exceed a specified level. This analysis demonstrates that the weighting scheme most commonly employed is subject to intertemporal manipulation. This investigation provides specific demand conditions under which weight manipulation can arise, shows the manipulation to reduce social welfare, and proposes a simple alternative weighting scheme that is less prone to manipulation. The alternative weighting scheme can help in designing more effective price-cap plans, especially if new plans have longer terms than current ones.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::5b1a198cd60e6fa2369805e1e9d44237 https://doi.org/10.1016/0167-6245(95)00005-9 Zobrazit plný text záznamu Full Text from ScienceDirect