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...

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...

In this article we describe steps that governments and investors can take to mitigate regulatory risk. Such risk mitigation applies a set of institutional and financial instruments to make risks and rewards commensurate with each other, promoting efficient investment. Managers and investors are...