Coasean Quality of Regulated Goods
In: The B.E. journal of economic analysis & policy, Volume 16, Issue 4
Abstract
Abstract
The quality of goods provided by public utilities depends on infrastructure features and operational inputs. I compare the economic efficiency that results from price ceilings and minimum quality standards (i. e., compliance with environmental, chemical, and performance standards and norms) imposed by a benevolent regulator to a Coasean bargaining solution between a median consumer and a monopolist. When quality is non-excludable and non-rival, rate-of-return regulation yields higher economic efficiency than price cap regulation.
Citations
We have found one citation for you at OpenAlex.
We have found citations for you at OpenAlex.
References
We have found one reference for you at OpenAlex.
We have found references for you at OpenAlex.
Report Issue