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Sources of Asymmetric Risk in Regulated Industries

Chapter
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Part of the Topics in Regulatory Economics and Policy Series book series (TREP, volume 14)

Abstract

Some background in the relevant economic principles is necessary for the analysis of the following Chapters 5 through 9 on gas pipelines to make sense. In particular, this chapter:
  1. 1.

    1. Contrasts the prices charged for capital investments under competition and under traditional regulation; and

     
  2. 2.

    2. Explores the kinds of risks that do and do not affect the cost of capital.1

     

Keywords

Economic Principle Regulatory Risk Gambling Casino Competitive Prex Capital Charge 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 1993

Authors and Affiliations

  1. 1.The Brattle GroupUSA
  2. 2.Sloan School of ManagementMassachusetts Institute of Technology and The Brattle GroupUSA

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