Regulation under Financial Constraints
Bibliographic Data
| ID | 12615747 |
|---|---|
| Authors | Axel Gautier (0000-0001-7700-3814, UCLouvain Saint-Louis Brussels, corresponding author) |
| Year | 2004 |
| Volume | 75 |
| Issue | 4 |
| Pages | 645-656 |
| Publication date | 2004-11-10 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Annals of Public and Cooperative Economics (JOURNAL) |
| Journal identifiers | ISSN: 1370-4788 • E-ISSN: 1467-8292 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/j.1467-8292.2004.00266.x |
| OpenAlex | W2023733671 |
| Language | EN |
| Citations received | 1 |
| References cited | 5 |
This article studies a simple procurement problem (Laffont and Tirole,1993) where the regulator faces a cash‐in‐advance constraint. The introduction of such a constraint not only reduces the amount of public good provided but also limits the instruments available to the regulator. The wealth constraint could change the optimal regulatory contract from a two‐part tariff, where the quantities produced depend on the firm’s cost, to a less efficient fixed fee where the firm produces the same quantity whatever its cost
Budget constraint · Business · Cash · Constraint (computer-aided design · Economics · International economics · Microeconomics · Procurement · Regulator · Simple (philosophy · Tariff · Auction Theory and Applications · Law, Economics, and Judicial Systems · Mathematics · Supply Chain and Inventory Management · Finance
| Citations per year | 0.05 |
|---|---|
| Citation span | 2007 - 2007 (1) |
| Highly cited | No |