A practical approach to quality-adjusted price cap regulation

  • Currier K
  • 14

    Readers

    Mendeley users who have this article in their library.
  • 3

    Citations

    Citations of this article.

Abstract

Price cap regulation is often combined with service quality regulation since price caps may create incentives for quality degradation. A service quality adjustment factor (the Q-Factor) in the price cap formula ensures that allowed prices fall as quality declines. This paper discusses some considerations in determining the appropriate form of the Q-Factor. The paper examines the difficulties involved in exploiting the price/quality tradeoff. In addition, the paper presents a quality-corrected price cap procedure-possessing desirable properties-that can be implemented with reasonable informational requirements. © 2007 Elsevier Ltd. All rights reserved.

Author-supplied keywords

  • Price caps
  • Service quality adjustment factor
  • Telecommunications regulation

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document

Authors

  • Kevin M. Currier

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free