Optimal state-contingent regulation under limited liability

  title={Optimal state-contingent regulation under limited liability},
  author={Robert Gary-Bobo and Yossi Spiegel},
We consider an optimal regulation model in which the regulated ...rm’s production cost is subject to random, publicly observable shocks. The distribution of these shocks is correlated with the ...rm’s cost type which is private information. The regulator designs an incentive compatible regulatory scheme which adjusts itself automatically ex post given the realization of the cost shock. We derive the optimal scheme assuming that there is an upper bound on the ...nancial losses that the ...rm can… CONTINUE READING
6 Citations
15 References
Similar Papers


Publications referenced by this paper.
Showing 1-10 of 15 references

Optimal Contracts with Public Ex Post Information,

  • M Riordan, D. Sappington
  • Journal of Economic Theory,
  • 1988
Highly Influential
7 Excerpts

Continuity in Auction Design,

  • J. Robert
  • Journal of Economic Theory,
  • 1991
Highly Influential
5 Excerpts

“ Regulation , Asymmetric Information , and Auditing

  • D. Besanko
  • RAND Journal of Economics
  • 1984
Highly Influential
9 Excerpts

Contractual Design with Correlated Information under Limited Liability,

  • D Demougin, D. Garvie
  • Rand Journal of Economics,
  • 1991
Highly Influential
4 Excerpts

California Electricity Crisis , ” NBER working paper 8442

  • P Joskow
  • 2001
1 Excerpt

California Electricity Crisis,

  • A. Kessler, C. Lülfesmann, P Schmitz
  • Joskow P
  • 2001

Optimal Contracting with Veri ... able Ex Post Signals

  • A. Kessler, C. Lülfesmann, P. Schmitz
  • 2000

The Robustness of the Independent Private Value Model in Bayesian Mechanism Design

  • G. Kosmopoulou, S. Williams
  • Economic Theory
  • 1998
1 Excerpt

“ The Capital Structure of a Reglated Firm . ”

  • Y. Spiegel, D. Spulber
  • RAND Journal of Economics
  • 1994

Similar Papers

Loading similar papers…