TY - JOUR
AU - Currier, Kevin
AB - The strong incentive to reduce costs under price cap regulation may create incentives for a regulated firm to reduce delivered service quality levels. Corrective measures, such as service quality standards or a service quality adjustment factor in the price cap formula may mitigate against this tendency. In this paper, we explore the properties of a regulatory scheme in which a Laspeyres index of prices and qualities is employed by the regulator.
TI - Quality-Adjusted Laspeyres Price Caps: A Graphical Analysis
JF - Atlantic Economic Journal
DO - 10.1007/s11293-006-9041-y
DA - 2006-11-07
UR - https://www.deepdyve.com/lp/springer-journals/quality-adjusted-laspeyres-price-caps-a-graphical-analysis-om5M02w2Dw
SP - 481
EP - 490
VL - 34
IS - 4
DP - DeepDyve
ER -