ASYMMETRIC DEMAND INFORMATION IN REGULATION
S. Keith Berry
(Associate Professor of Economics and Business, Hendrix College, Conway, AR 72032)
88
Abstract
This paper considers a regulatory model where regulators have less demand information than the firm. Although the firm can over‐earn because of that asymmetry, regulators will ultimately notice. From the company's perspective it may be preferable to eliminate the regulators' uncertainty, rather than have the allowed return reduced.
Citation
Berry, S.K. (1997), "ASYMMETRIC DEMAND INFORMATION IN REGULATION", Studies in Economics and Finance, Vol. 18 No. 1, pp. 129-143. https://doi.org/10.1108/eb028739
Publisher
:MCB UP Ltd
Copyright © 1997, MCB UP Limited