A regulatory bargain for diversified enterprises

Article Abstract:

An analysis of price and rate regulations for diversifiedpublic utilities is presented. The analysis focuses a regulatory bargain which binds a firm's economic profit to consumer surplus levels accruing to customersfor non-competitive markets. It is shown that the regulation generates cost minimization in production, efficient market pricing, competitive market diversification under economies of scope and customer protection in case of diversification.

Finance, Public utilities

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The choice of technology and capital structure under rate regulation

Article Abstract:

Regulated business enterprises' choice between technologies with different variables and fixed costs is examined. Rate regulation may compel these firms to choose technologies with lower fixed costs and higher variable costs over those considered as socially optimal. The extent of this distortion is dependent on the firms' financing of their investment in the capital market.

Purchasing Management, Contract Administration, Purchasing, Evaluation, Investments, Science and technology policy, Business enterprises, Contract management

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Risk, price regulation, and irreversible investment

Article Abstract:

A study analyzing the regulator's price setting, rate base, and allowed rate of return decisions are linked if process are set so that the regulated firms just break even whenever they are forced to invest. Therefore it is required that regulators adopt traditional rate of return regulation.

Legal issues & crime, Government regulation (cont), Government regulation, New Zealand, Legal/Government Regulation, Laws, regulations and rules, Price fixing

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