Price Regulation and Risk: The Impact of Regulation System Shifts on Risk Components: 641 (Lecture Notes in Economics and Mathematical Systems, 641) - Softcover

Book 43 of 126: Lecture Notes in Economics and Mathematical Systems

Hierzenberger, Michael

 
9783642120466: Price Regulation and Risk: The Impact of Regulation System Shifts on Risk Components: 641 (Lecture Notes in Economics and Mathematical Systems, 641)
Softcover
ISBN 10: 3642120466 ISBN 13: 9783642120466
Publisher: Springer, 2010

Synopsis

Natural monopolies are not subject to the market-based principle of competition. Consequently, it is necessary to control companies in such monopoly positions with regard to their pricing. In the future, it will become more and more important to consider a possible change in the regulation regime when the future-oriented costs of equity - both in terms of price regulation and for conducting capital market-oriented business valuations - are to be determined. Based on the principal-agent problem, the book explains this topic. The effect of a change in the regulation regime is presented in the form of two studies: an international secondary analysis of the effects on cost of equity based on event studies of the Anglo-Saxon area and a primary analysis based on the Austrian regulation policy for electricity and gas supply systems. The two studies arrive at similar results: The change from a rate-of-return regulation to incentive regulation systems leads to a significant increase in systematic risk.

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From the Back Cover

Natural monopolies are not subject to the market-based principle of competition. Consequently, it is necessary to control companies in such monopoly positions with regard to their pricing. In the future, it will become more and more important to consider a possible change in the regulation regime when the future-oriented costs of equity - both in terms of price regulation and for conducting capital market-oriented business valuations - are to be determined. Based on the principal-agent problem, the book explains this topic. The effect of a change in the regulation regime is presented in the form of two studies: an international secondary analysis of the effects on cost of equity based on event studies of the Anglo-Saxon area and a primary analysis based on the Austrian regulation policy for electricity and gas supply systems. The two studies arrive at similar results: The change from a rate-of-return regulation to incentive regulation systems leads to a significant increase in systematic risk.

"About this title" may belong to another edition of this title.

Publisher
Springer
Publication date
2010
Language
English
ISBN 10 
3642120466
ISBN 13 
9783642120466
Binding
Paperback
Number of pages
190

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9783642120480: Price Regulation and Risk: The Impact of Regulation System Shifts on Risk Components

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ISBN 10:  3642120482 ISBN 13:  9783642120480
Publisher: Springer, 2010
Softcover