This paper studies the mechanism design that induces firms to provide public goods under two regulatory means： price cap regulation and optimal regulation, respectively. We first outline two models of monopoly regula...This paper studies the mechanism design that induces firms to provide public goods under two regulatory means： price cap regulation and optimal regulation, respectively. We first outline two models of monopoly regulation with unobservable marginal costs and effort, which can be regard as an optimal problem with dual restrictions. By solving this problem, we get the two optimal regulatory mechanisms to induce the provision of public goods. Further, by comparative statics, the conclusion is drawn that the welfare loss as sociated with price cap regulation, with respective to optimal regulation, increases more with increase of the expense of public goods.展开更多
Online car-hailing services （or e-hailing） have become an increasingly popular way for Chinese people to meet their travel needs in recent years. But these services used to operate in a ＂gray area＂ of the law. Ch...Online car-hailing services （or e-hailing） have become an increasingly popular way for Chinese people to meet their travel needs in recent years. But these services used to operate in a ＂gray area＂ of the law. China＇s Ministry of Transport recently released the country＇s first nationwide regulations on e-hailing services, thus legitimizing the booming industry.展开更多
文摘This paper studies the mechanism design that induces firms to provide public goods under two regulatory means： price cap regulation and optimal regulation, respectively. We first outline two models of monopoly regulation with unobservable marginal costs and effort, which can be regard as an optimal problem with dual restrictions. By solving this problem, we get the two optimal regulatory mechanisms to induce the provision of public goods. Further, by comparative statics, the conclusion is drawn that the welfare loss as sociated with price cap regulation, with respective to optimal regulation, increases more with increase of the expense of public goods.
文摘Online car-hailing services （or e-hailing） have become an increasingly popular way for Chinese people to meet their travel needs in recent years. But these services used to operate in a ＂gray area＂ of the law. China＇s Ministry of Transport recently released the country＇s first nationwide regulations on e-hailing services, thus legitimizing the booming industry.
