Reduction of regulatory risk: a network economic approach
Several definitions of regulatory risk are known from the literature. From the perspective of regulatory reform it is important to differentiate between the impact of a given regulatory scheme on the firm's risk exposure and the risk arising from discretionary behavior of regulatory agencies. Whereas the conse-quences of effective regulation in principle are known and accepted, excessive regulatory discretion may cause a strong need for regulatory reform. Regulatory reform focussing on the regulatory base risk and the regulatory instrument risk has to solve the problem of the optimal division of labour between regulatory discretion and statutory constraints. Therefore, in this paper the design of a disaggregated regulatory mandate is elaborated; its major elements being the restriction of regulation to monopolistic bottlenecks and a disaggregated appli-cation of sector-specific regulatory instruments.
|Date of creation:||2007|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 +761 / 203 2301
Fax: +49 +761 / 203 2303
Web page: http://portal.uni-freiburg.de/vw/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chang, Mo Ahn & Thompson, Howard E, 1989. "An Analysis of Some Aspects of Regulatory Risk and the Required Rate of Return for Public Utilities," Journal of Regulatory Economics, Springer, vol. 1(3), pages 241-57, September.
- Knieps, Günter, 2002. "Wettbewerb auf den Ferntransportnetzen der deutschen Gaswirtschaft: Eine netzökonomische Analyse," Discussion Papers 85 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
- Demsetz, Harold, 1969. "Information and Efficiency: Another Viewpoint," Journal of Law and Economics, University of Chicago Press, vol. 12(1), pages 1-22, April.
- Knieps, Günter, 2005. "Telecommunications markets in the stranglehold of EU regulation: on the need for a disaggregated regulatory contract," Discussion Papers 109 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
- G. Knieps, 2005. "Telecommunications Markets in the Stranglehold of EU Regulation: On the need for a disaggregated regulatory contract," Competition and Regulation in Network Industries, Intersentia, vol. 6(2), pages 75-94, June.
- Joshua Gans & Stephen King, 2003. "Access Holidays for Network Infrastructure Investment," Monash Economics Working Papers archive-39, Monash University, Department of Economics.
- Gaggero, Alberto A., 2007. "Regulatory risk in the utilities industry: An empirical study of the English-speaking countries," Utilities Policy, Elsevier, vol. 15(3), pages 191-205, September.
- Roger Buckland & Patricia Fraser, 2001. "Political and Regulatory Risk in Water Utilities: Beta Sensitivity in the United Kingdom," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 28(7&8), pages 877-904.
When requesting a correction, please mention this item's handle: RePEc:zbw:aluivr:117. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.