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- W2026695722 abstract "A number of theoretical studies have examined regulated output price and regulatory lag as policy tools of regulatory commissions. Bailey and Coleman argue that regulatory lag mitigates the Averch-Johnson effect. Wendel uses a game-theoretic model to show that regulators' and firms' strategies determine R and D expenditures and regulatory lag. Bailey argues that firms engage in R and D to earn excess profits because of regulatory lag, which is set by regulators. Assuming cost plus regulation, Sweeney argues that increased regulatory lag can retard adoption of new technologies; Sappington presents a similar argument-increasing lag induces waste. Bawa and Sibley assume that regulators directly adjust price to affect rates of return and that regulatory lag is endogenously determined as a function of the difference between the actual and fair rate of return." @default.
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- W2026695722 date "1994-01-01" @default.
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- W2026695722 title "Explaining Regulatory Commission Behavior in the Electric Utility Industry" @default.
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- W2026695722 doi "https://doi.org/10.2307/1060572" @default.
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