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| Kevin Currier |
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| ''Combining Pricing Bands with Price Cap Regulation'' |
| ( 2005, Vol. 12 No.8 ) |
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| Within the context of natural monopoly regulation, price cap schemes are often combined with price bands in which a maximum percentage by which the price in a market can be raised or lowered is stipulated. In this note, we examine the feasibility of combining average-revenue-lagged and Laspeyres price cap regulation with price band regulation. Specifically, we study the impact of pricing bands on the known efficiency properties of these two price cap schemes. |
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| Keywords: |
JEL: L5 - Regulation and Industrial Policy: General
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| Manuscript Received : Dec 13 2004 | | Manuscript Accepted : May 03 2005 |
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