An Econometric Analysis of the Asymmetric Information , Regu lator-Ut lity Interaction

@inproceedings{Wolak2008AnEA,
  title={An Econometric Analysis of the Asymmetric Information , Regu lator-Ut lity Interaction},
  author={Frank A. Wolak},
  year={2008}
}
This paper presents procedures for estimating the parameters of a regulated firm's production function which explicitly model the impact of the private information possessed by utility in the regulatory process. The paper derives the optimal regulatory outcome for two cases: (1) the utility's private information is observable by the regulator and (2) only the distribution of the private information is observable by the regulator. Given a parametric form for the utility's production function… CONTINUE READING