Government regulators often establish maximum prices for regulated services. This paper explains the proper economic principles for establishing such constraints. The principles imply a range - an upper limit and a lower limit - that constrain the regulator's discretion. Principles emerging from...

Being a utility regulator has perils because the independence of the regulator necessarily removes power from politicians, operators, and others. Furthermore, regulators are sometimes scapegoats for unpopular policies and unavoidably become involved in shaping the policies that they are supposed...

Industry Structure and Pricing: The New Rivalry in Infrastructure extends current economic models by incorporating effects of actual and potential rivalry in markets outside the markets of immediate interest. Focusing on the contestable model, the author shows how diverse patterns of actual and...