This article provides a review and critique of the empirical literature that examines the effects of incentive regulation on retail telephone service quality in the United States. The literature provides mixed findings. Some dimensions of service quality appear to improve under incentive...

We extend Philippe Aghion and Patrick Bolton's (1987) classic model to analyze the equilibrium incidence and impact of exclusive contracts in a setting where research and development (R&D) drives industry performance. An exclusive contract between an incumbent supplier and a buyer arises when...

We characterize the optimal regulatory policy to promote demand response in the electricity sector. Demand response arises when consumers reduce their purchases of electricity in times of peak demand, when the utility's marginal cost of supplying electricity is relatively high. The optimal...