This paper shows that yardstick competition does not assist a regulator when lump-sum transfers are not costly and the regulator does not care about the distribution of income. Yardstick competition may discourage investment that would make efficient operation possible. The paper characterizes...

This paper provides characterization theorems for preferences that can be represented by the minimum, the maximum, and the sum of components, or combinations of these forms. It contains a discussion of applications to social choice.