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A Reexamination of Yardstick Competition Author info | Abstract | Publisher info | Download info | Related research | Statistics Joel Sobel
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This paper shows that yardstick competition does not assist a regulator when lump-sum transfers are not costly and the regulator does not care about the distribution of income. Yardstick competition may discourage investment that would make efficient operation possible. The paper characterizes optimal regulatory schemes in a simple model and demonstrates that it may be optimal to limit the amount of information available to the regulator. Copyright (c) 1999 Massachusetts Institute of Technology.
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Article provided by Blackwell Publishing in its journal Journal of Economics & Management Strategy .
Volume (Year): 8 (1999)
Issue (Month): 1 (03)
Pages: 33-60
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Handle: RePEc:bla:jemstr:v:8:y:1999:i:1:p:33-60Contact details of provider: Web page: http://www.kellogg.northwestern.edu/research/journals/JEMS/
Order Information: Web: http://www.blackwellpublishing.com/journal.asp?ref=1058-6407&site=1
For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
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