Article ID Journal Published Year Pages File Type
9552622 Information Economics and Policy 2005 14 Pages PDF
Abstract
We study the incentives of regulated firms to acquire costly information under price cap regulation. We show that revenue sharing plans, in the spirit proposed by Sappington and Weisman [Inf. Econ. Policy 8 (1996) 229], can provide greater incentives for information acquisition than pure price capping and increase social welfare.
Keywords
Related Topics
Social Sciences and Humanities Business, Management and Accounting Management of Technology and Innovation
Preview
Price cap regulation, revenue sharing and information acquisition
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