A Reexamination of Yardstick Competition
AbstractThis 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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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Journal of Economics & Management Strategy.
Volume (Year): 8 (1999)
Issue (Month): 1 (03)
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- Potters, Jan & Rockenbach, Bettina & Sadrieh, Abdolkarim & van Damme, Eric, 2004.
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- V. Bhaskar & Bishnupriya Gupta & Mushtaq Khan, 2002. "Partial Privatization and Yardstick Competition: Evidence from Employment Dynamics in Bangladesh," Economics Discussion Papers 545, University of Essex, Department of Economics.
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