How to determine the X in RPI-X regulation: a user's guide

Jeffrey Bernstein and David Sappington

Telecommunications Policy, 2000, vol. 24, issue 1, 63-68

Abstract: We examine the appropriate choice of an X factor in RPI-X (or price cap) regulation. After providing a basic guideline, we explain how to modify this guideline to account for: (1) limited spans of regulatory control; (2) anticipated structural changes in the regulated industry, such as a strengthening of competitive forces; (3) major impacts of the pricing decisions of the regulated firm on the economy-wide rate of price inflation; and (4) imperfect competition outside of the regulated sector.

Keywords: X; factor; Price; cap; regulation; Regulation; policy (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (12)

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