To avoid the extremely high profit levels found in recent experiences with price cap regulation, some regulators have … profits. The model determines both the level of profits that triggers the profit- sharing mechanism and the consequent price … adjustment endogenously. There is an endogenous regulatory lag initially characterized by a price cap regulation, followed by a …

To avoid the extremely high profit levels found in recent experiences with price cap regulation, some regulators have … profits. The model determines both the level of profits that triggers the profit-sharing mechanism and the consequent price … adjustment endogenously. There is an endogenous regulatory lag initially characterized by a price cap regulation, followed by a …