Heesche, Emil; Bogetoft Pedersen, Peter - In: Decision analytics journal 3 (2022), pp. 1-12
Data Envelopment Analysis (DEA) based cost norms are widely used to regulate natural monopolies like water, electricity … investigate the incentives of a DEA based regulation when some of the demand dimensions, the cost drivers, can, in fact, be … controlled by the monopoly. In such cases, the classical DEA based regulation may lead to suboptimal incentives. Specifically, we …
