Public-Utility Regulators Are Only Human: A Positive Theory of Rational Constraints.

S-Tier
Journal: American Economic Review
Year: 1988
Volume: 78
Issue: 3
Pages: 444-62

Authors (2)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Positive models of public-utility regulation should capture personal incentives of regulators. A regulatory objective function is specified by appea l to standard human concerns coupled with politics and processes pecu liar to public-utility regulation. Constraints a rational regulator w ould impose on the firm are thereby derived, and connections between regulatory objectives and regulatory rules illuminated. Results inclu de theoretical rationales for "rate-of-return" regulation in a worl d of certainty, and a largely neglected type of "rate-of-return" re gulation under (symmetric) uncertainty. Other forms of regulation sho uld also be explicable in terms of personal motives of human regulato rs. Copyright 1988 by American Economic Association.

Technical Details

RePEc Handle
repec:aea:aecrev:v:78:y:1988:i:3:p:444-62
Journal Field
General
Author Count
2
Added to Database
2026-01-25