Nonparametric Identification of Incentive Regulation Models *

@inproceedings{Perrigne2008NonparametricIO,
  title={Nonparametric Identification of Incentive Regulation Models *},
  author={I. Perrigne and Quang Vuong},
  year={2008}
}
This paper establishes the nonparametric identification of the incentive regulation model with ex post observed cost developed in Laffont and Tirole (1986). We first extend the model to allow for general random demand and cost functions, while considering a monopolist producing a private good. We then map the resulting model into a structural econometric model that includes observed and unobserved heterogeneity. We establish the nonparametric identification of the cost of public funds, the… CONTINUE READING