The paper analyzes under what circumstances policymakers experiment with policies with uncertain outcomes, when they prefer to imitate policies initiated in other countries, and when they prefer to coordinate policies internationally. Policymakers have private costs of active policies and...

The paper analyzes under what circumstances policymakers experiment with policies with uncertain outcomes, when they prefer to imitate policies initiated in other countries, and when they prefer to coordinate policies internationally. Policymakers have private costs of active policies and...

We develop a numerical model that simulates the evolution of a virtual population with an incentive and ability-based wage, capital yield from savings, social welfare system, and total income subject to taxation and political turnovers. Meta-heuristics, particle swarm optimization (PSO) in...

The roam-like-at-home regulation (RLAH) eliminated all mobile roaming surcharges to Eu-ropean consumers travelling within the European Economic Area (EEA). We measure the causal impact of the regulation on EEA roaming traffic, using the Rest of the World as a control group. We find large and...

Owners of multi-sided platforms typically possess strong power over complementors. Such power asymmetry gives platform owners the edge on setting high platform fees to capture most of the surplus created on their platforms. While there is a heated debate on regulating these powerful platforms,...

This paper analyzes the welfare impact of a cap on commissions paid by product providers to intermediaries who advise consumers. In contrast to the extant literature, with a downward sloping demand capped commissions have a direct impact on product providers' margins and consumers' prices. I...

Successful innovation is essential for the survival and growth of organizations but how best to incentivize innovation is poorly understood. We compare how two common incentive schemes affect innovative per- formance in a field experiment run in partnership with a large life sciences company. We...

The roam-like-at-home regulation (RLAH) eliminated all mobile roaming surcharges to Eu-ropean consumers travelling within the European Economic Area (EEA). We measure the causal impact of the regulation on EEA roaming traffic, using the Rest of the World as a control group. We find large and...

Despite the popularity of price cap regulation in practice, the economic literature provides relatively little guidance on how to determine the X factor, which is the rate at which inflation -adjusted output prices must fall under price cap plans. We review the standard principles that inform...

We evaluate the impact of a price cap regulation implemented in the Colombian pharmaceutical market between 2011 and 2014. To do so, we take advantage of a unique data set where we observe three sources of variation: i) differences across eighteen groups in the Anatomical Therapeutic Chemical...

Recycling and the recovery of waste are crucial waste management strategies. In light of the new EU circular economy approach, these strategies remain core pillars of a competitive and sustainable waste value chain. Local governments have an important role in controlling and checking the...

The paper evaluates the impact of capital structure on profitability and market price of large cap and mid cap Indian pharmaceutical companies. The pharmaceutical companies listed in NSE and NSE midcap index were selected for the study. The secondary data was considered from 2013 to 2017. The...

This paper reports on the Israeli experience with a high-occupancy toll (HOT) lane between Jerusalem and Tel Aviv. It highlights the integration of a park-and-ride service with the HOT lane and the provision of free parking to encourage carpooling. The paper also analyses Israel's pilot "Going...

Dieser Bericht greift mit der output-orientierten Regulierung (OOR) eine aktuelle Entwicklung in der Regulierungspraxis auf, die insbesondere durch die Energiewende an Relevanz gewinnt. Ziel der OOR ist die gezielte Beanreizung vorgegebener Leistungsziele (Outputs), die im Rahmen einer ansonsten...

Unbundling of vertically integrated utilities has become an integral element in the regulation of network industries and has been implemented in many jurisdictions. The idea of separating the network, as the natural monopoly, from downstream retailing, which may be exposed to competition, is...

The regulatory and operating context of energy networks is dynamic and constantly evolving. Achieving a multitude of economic, environmental, social and policy objectives is a challenging task for the sector regulators. In 2010, the UK energy regulator Ofgem replaced its approach to energy...

To explore the propagation of undesirable policies in a form of populist extremism, we construct a social learning model featuring agency problems. Politicians in different countries sequentially implement a policy. Voters learn the incumbent politician's type and the desirable policy by...

The rapid growth of Distributed Energy Resources (DER) and their integration into network presents currently the greatest challenges for many network operators worldwide in terms of network stability and power quality. To meet these challenges not only huge investment in grid expansion and smart...

Dieser Bericht greift mit der output-orientierten Regulierung (OOR) eine aktuelle Entwicklung in der Regulierungspraxis auf, die insbesondere durch die Energiewende an Relevanz gewinnt. Ziel der OOR ist die gezielte Beanreizung vorgegebener Leistungsziele (Outputs), die im Rahmen einer ansonsten...

This paper critically surveys the growing literature on the policy choices of local governments. First, we identify various reasons for local government policy interactions, including fiscal competition, bidding for firms, yardstick competition, expenditure spillovers, and Tiebout sorting. We...

This paper reports on the Israeli experience with a high-occupancy toll (HOT) lane between Jerusalem and Tel Aviv. It highlights the integration of a park-and-ride service with the HOT lane and the provision of free parking to encourage carpooling. The paper also analyses Israel's pilot "Going...

We study the impact of government-led incentive systems by examining a staggered reform in the Chinese state-owned enterprise (SOE) performance evaluation policy. To improve capital allocative efficiency, in 2010, regulators switched from using return on equity (ROE) to economic value added...

Two well-known mechanisms for enhancing managers' accountability are yardstick competition and internal monitoring. Yardstick competition puts managers in direct competition when firms make decisions for re-appointment (Tirole, 2006). Monitoring is used by firms to detect managers' rent-seeking...

We propose a difference-in-differences (DiD) approach to estimate the impact of incentives on cost reduction. We show theoretically, and estimate empirically, that German electricity distribution system operators (DSOs) incur higher costs when subject to a lower powered regulation mechanism. The...

It is held that contemporary Western organizations would neither exist nor develop without leaders who efficiently and effectively manage. Researchers assert that in modern business enterprises, leadership requires the skill of working with and through people and other organizational resources...

We investigate yardstick competition between local jurisdictions in which pure rent-seeking incumbents undertake an identical infrastructure project choosing be- tween two contractual arrangements with different financing profiles, namely traditional procurement (TP) and public-private...

In this paper, I study the effect of parallel trade (cross border resale of goods without the authorization of the manufacturer) on pharmaceutical regulation in a North-South framework with a firm's endogenous decision to export to the South. Governments in both countries may limit prices...

We propose a difference-in-differences (DiD) approach to estimate the impact of incentives on cost reduction. We show theoretically, and estimate empirically, that German electricity distribution system operators (DSOs) pile up more costs in the year used to determine future prices when subject...