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© 1994

Incentive Regulation and the Regulation of Incentives

Book

Part of the Topics in Regulatory Economics and Policy Series book series (TREP, volume 17)

Table of contents

  1. Front Matter
    Pages i-xi
  2. Glenn Blackmon
    Pages 1-3
  3. Glenn Blackmon
    Pages 5-22
  4. Glenn Blackmon
    Pages 49-85
  5. Glenn Blackmon
    Pages 87-101
  6. Glenn Blackmon
    Pages 103-108
  7. Back Matter
    Pages 109-133

About this book

Introduction

The class is theory of price regulation assumed that the regulator knows the fIrm's costs, the key piece of information that enables regulators to pressure fmns to choose appropriate behaviors. The "regulatory problem" was reduced to a mere pricing problem: the regulator's goal was to align price with marginal cost, subject to the constraint that revenues must cover costs. Elegant and important insights ensued. The most important was that regulation was inevitably a struggle to achieve second-best outcomes. (Ramsey pricing was a splendid example. ) Reality proved harsh to regulatory theory. The fmn's costs are by no means known to the regulator. At best, the regulator may know how much is currently spent to provide services, but hardly what costs would be if the fmn vigorously pursued effIciency. Even if the current cost curve were known to the regulator, technologies change so swiftly that today's costs are a very poor indicator of tomorrow's, and those are the costs that will determine the fIrm's future decisions. With the burgeoning attention to information considerations and game theory in economics, the regulator's problem of eliciting host information about cost has received considerable attention. In most cases, however, it has been in context that are both static and stylized; such analyses rarely capture many of the essential elements of real world regulatory issues. This volume represents a fresh approach. It reflects Glenn Blackmon's twin strengths, a keen analytic mind and important experience in the regulatory arena.

Keywords

consumer efficiency regulation utility

Authors and affiliations

  1. 1.Delta PacificOlympiaUSA

Bibliographic information

  • Book Title Incentive Regulation and the Regulation of Incentives
  • Authors Glenn Blackmon
  • Series Title Topics in Regulatory Economics and Policy Series
  • DOI https://doi.org/10.1007/978-1-4615-2706-0
  • Copyright Information Kluwer Academic Publishers 1994
  • Publisher Name Springer, Boston, MA
  • eBook Packages Springer Book Archive
  • Hardcover ISBN 978-0-7923-9470-9
  • Softcover ISBN 978-1-4613-6165-7
  • eBook ISBN 978-1-4615-2706-0
  • Edition Number 1
  • Number of Pages XIII, 133
  • Number of Illustrations 0 b/w illustrations, 0 illustrations in colour
  • Topics Industrial Organization
    Microeconomics
  • Buy this book on publisher's site
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Reviews

`To sum up, Glenn Blackmon has written a fine book that repreents a valuable contribution to the literature on incentive regulation. He poses the `right' questions and supplies thought-provoking answers. The exposition is clear and well-motivated with the right mix of theory and practice. It should prove to be a useful reference for regulatory practitioners and academics alike. In a classroom setting, it would be an ideal supplemental text for a standard course in regulatory economics. It is well worth reading!'
Review of Industrial Organization, 11 (1996)