Price-Cap Regulation and Uncertain Technical Change

Applied Economics Letters, vol. 7, no.11, pp. 739-742

Posted: 6 Apr 2016

See all articles by Rajeev K. Goel

Rajeev K. Goel

Illinois State University - Department of Economics

Date Written: 2000

Abstract

The paper studies the effect of price-cap regulation on the research behaviour of a regulated firm and an external developer who are pursuing an uncertain innovation. Contributions of this work include incorporating innovation uncertainty and imperfect appropriability of innovation rewards into the analysis. In contrast to existing literature, it is found that a tighter price-cap diminishes the incentives for cost-reduction.

Suggested Citation

Goel, Rajeev K., Price-Cap Regulation and Uncertain Technical Change (2000). Applied Economics Letters, vol. 7, no.11, pp. 739-742. Available at SSRN: https://ssrn.com/abstract=2758936

Rajeev K. Goel (Contact Author)

Illinois State University - Department of Economics ( email )

Normal, IL 61790-4200
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
43
PlumX Metrics