Incentive Regulation, Investments and Technological Change

Abstract

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Price Regulation in Oligopolistic Markets

“…According to this result, the optimal regulation is a tradeoff between the risky option, represented by c L , which could be very profitable for the planner but risks zero output should real marginal cost be c H , and the safe option, represented by c H , which is always associated with positive production but is not optimal should the real marginal cost be c L . (A similar tradeoff occurs in Vogelsang [19], but it applies to investment. The fact that high-cost firms might be shutdown under price regulation is also a feature of the optimal mechanism.…”

Price Regulation in Oligopolistic Markets

“…On the contrary, when the two marginal costs are sufficiently far apart, the optimal policy is to set a regulated price equal to the lower value of the marginal cost because this option yields greater social welfare. For intermediate values 4 A similar trade-off occurs in Vogelsang (2010) but it applies to investment. of β, the free market may or may not be the optimal policy.…”

Tests of Perturbative QCD and Jet Physics

“…One should note that a shape a bit closer to that observed in the data can be obtained in other ways. Vogelsang et al [17] use a NLO treatment of fragmentation and allow the renormalization and factorization scales to differ, yielding the curves shown in Fig.12 without any k T .…”