This paper analyses simultaneous regulation of cost and quality when firms have private, correlated information about … productivity and the regulator receives a signal about quality. It is shown that managerial effort and expenditures on quality are … positively correlated in the optimal contract. The higher is firm productivity the more should the firm spend on quality …

We investigate the effect of competition on quality in regulated markets (e.g., health care, higher education, public … the open-loop solution (providers choose the optimal quality investment plan based on demand at the initial period) and … the feedback closed-loop solution (providers observe demand in each period and choose quality in response to current …

-of-return regulation is generally thought to result in overinvestment, while incentive regulation is believed to entail underinvestment …. Yet, previous empirical work has generally found that the introduction of incentive regulation has not systematically …-of-return regulation because investment decisions (what can be included in the rate base) are usually evaluated in a discretionary manner …

Hospital markets are often characterised by price regulation and the existence of different ownership types. Using a … Hotelling framework, this paper analyses the effect of heterogeneous objectives of the hospitals on quality differentiation … driving force is the single regulated price which induces under-(over-)provision of quality of the more (less) efficient …

). We show that standard theory in the economics of regulation must be reconsidered in a world with MNEs and novel results … ownership patterns as a substitute for co-operation in regulation between countries. …

differentiated products. The foreign firm is the most efficient in terms of R&D costs of quality development and the foreign country … intra-industry trade where the foreign producer manufactures a good of higher quality than the domestic firm. This … asymmetries are low and countries differ substantially in size, a PU leads to a quality reversal in the international market …

differentiated products. The foreign firm is the most efficientin terms of R&D costs of quality development and the foreign country … involvesintra-industry trade where the foreign producer manufactures a good of higher quality thanthe domestic firm. This …' costasymmetries are low and countries differ substantially in size, a PU leads to a quality reversalin the international market, which …