Advertisement

Consumer Surplus: An Incentive Subsidy

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

Abstract

The incentive regulation plans adopted by state regulators and reviewed in the last chapter focus on the firm’s expenditures. If the firm reduces its expenditures (either absolutely or relative to its revenues), the incentive schemes give it a share of those savings. The last chapter looked at the specific elements of those plans and how those elements make the plans more or less effective as incentive mechanisms.

Keywords

Marginal Cost Moral Hazard Consumer Surplus Incentive Regulation Marginal Cost Price 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Springer Science+Business Media New York 1994

Authors and Affiliations

  1. 1.Delta PacificOlympia

Personalised recommendations