Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/52341 
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dc.contributor.authorBrito, Duarteen
dc.contributor.authorPereira, Pedroen
dc.contributor.authorVareda, Joãoen
dc.date.accessioned2011-11-25T15:21:16Z-
dc.date.available2011-11-25T15:21:16Z-
dc.date.issued2011-
dc.identifier.urihttp://hdl.handle.net/10419/52341-
dc.description.abstractWe explore the separation of powers between the legislative and the executive branch of government as a way of overcoming the dynamic consistency problem of regulatory policy towards investment. We model the industry as a regulated duopoly. The incumbent is a vertically integrated firm that owns a wholesaler and a retailer. The entrant owns a retailer. Either retailer needs access to the input produced by the wholesaler to operate. The incumbent can make an investment that improves the quality of the input produced by the wholesaler. The regulator sets the access price and is unable to commit. The legislator sets the regulator's objective function and is able to commit. We derive general conditions under which having the legislator distort the regulator's objective function away from social welfare allows increasing the range of parameter values for which it is possible to induce socially desirable investment.en
dc.language.isoengen
dc.publisher|aInternational Telecommunications Society (ITS) |cCalgaryen
dc.relation.ispartofseries|a8th Asia-Pacific Regional Conference of the International Telecommunications Society (ITS): "Convergence in the Digital Age", Taipei, Taiwan, 26th-28th June, 2011en
dc.subject.jelL43en
dc.subject.jelL51en
dc.subject.jelL96en
dc.subject.jelL98en
dc.subject.ddc330en
dc.subject.keywordInvestmenten
dc.subject.keywordDynamic Consistencyen
dc.subject.keywordRegulator's Objectiveen
dc.titleInvestment, dynamic consistency and the sectoral regulator's obective-
dc.typeConference Paperen
dc.identifier.ppn673079651en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:itsp11:52341en

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