Recovery of stranded costs is perhaps the most litigious issue encountering regulators in promoting competition in United States and European utility industries. We build a dynamic model of Cournot competition which takes into account a particular regulatory mechanism regularly employed in United States and also in Spain for settling stranded costs payments, the competitive transition charges (CTC).
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Paper provided by Centro de Estudios Monetarios Y Financieros- in its series Papers with number
0107.
Length: 45 pages Date of creation: 2001 Date of revision: Handle: RePEc:fth:cemfdt:0107
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