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Toward a Synthesis of Models of Regulatory Policy Design with Limited Information

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  • Mark Armstrong
  • David E. M. Sappington

Abstract

We develop a simple, yet general, model that admits as special cases several key analyses of the design of regulatory policy in the presence of asymmetric information. In doing so, we help to identify the central differences and similarities among the diverse analyses in the literature.

Suggested Citation

  • Mark Armstrong & David E. M. Sappington, 2004. "Toward a Synthesis of Models of Regulatory Policy Design with Limited Information," Journal of Regulatory Economics, Springer, vol. 26(1), pages 5-21, July.
    • Handle: RePEc:kap:regeco:v:26:y:2004:i:1:p:5-21
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    Cited by:

    1. Vedel, Suzanne E. & Lund, Dorthe H. & Jacobsen, Jette B. & Helles, Finn, 2006. "Grants for advisory services in the private Danish forestry sector - A principal-agent approach," Journal of Forest Economics, Elsevier, vol. 12(3), pages 185-199, December.
    2. Paul L. Joskow, 2014. "Incentive Regulation in Theory and Practice: Electricity Distribution and Transmission Networks," NBER Chapters, in: Economic Regulation and Its Reform: What Have We Learned?, pages 291-344, National Bureau of Economic Research, Inc.
    3. Hakenes, Hendrik & Schnabel, Isabel, 2013. "Regulatory Capture by Sophistication," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79991, Verein für Socialpolitik / German Economic Association.
    4. Kopsakangas-Savolainen, Maria & Svento, Rauli, 2010. "Comparing welfare effects of different regulation schemes: An application to the electricity distribution industry," Energy Policy, Elsevier, vol. 38(11), pages 7370-7377, November.
    5. Massarutto, Antonio & Ermano, Paolo, 2013. "Drowned in an inch of water," Utilities Policy, Elsevier, vol. 24(C), pages 20-31.

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