The use of a variable cost function in the regulation of the Italian water industry ♣

  title={The use of a variable cost function in the regulation of the Italian water industry ♣},
  author={Barbara Antonioli and Massimo Filippini},
The purpose of this study is to estimate a multivariate variable cost function in order to analyze the cost structure of a sample of Italian water distribution companies. The empirical results of this study could be used by the Italian Regulation Authority of this sector for two purposes: first, to improve the actual tariff regulation process, based on a benchmarking of variable costs, and second, to define the optimal size of a service territory in this sector. A variable cost function was… CONTINUE READING

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