We reexamine the mechanism of yardstick competition when the regulator does not observe firms' cost characteristics, which can depend on exogenous variables and idiosyncratic shocks.
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Paper provided by Institut National de la Statistique et des Etudes Economiques- in its series Papers with number
2000-31.
Length: 13 pages Date of creation: 2000 Date of revision: Handle: RePEc:fth:inseep:2000-31
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Find related papers by JEL classification: L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection