|
on Regulation |
| By: | Pittman, Russell |
| Abstract: | In its 2023 decision approving the acquisition of the Kansas City Southern Railway by the Canadian Pacific, the U.S. Surface Transportation Board conditioned its approval on the merged railway’s commitment “to keep gateways open on commercially reasonable terms” – that is, to allow shippers and non-merging railroads to continue to enjoy the option of using joint-line service, despite the merger’s creation of the alternative of single-line service on the merged railroad. A century has passed since the Board’s predecessor agency, the Interstate Commerce Commission, first imposed a condition of the maintenance of open gateways as a condition for approving a rail merger. This paper asks three questions. First, exactly what, in practice, are open gateways? Second, how have the two regulatory agencies dealt with the inherent tension between maintaining open gateways and achieving merger efficiencies? Third, what is the current state of play? |
| Keywords: | freight railways, regulation, vertical mergers, nondiscrimination conditions |
| JEL: | K23 L51 L92 R48 |
| Date: | 2024–12–01 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123063 |
| By: | Paul Simshauser |
| Keywords: | Renewable energy zones, renewables, spilled energy, marginal curtailment, battery storage |
| JEL: | D52 D53 G12 L94 Q40 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:enp:wpaper:eprg2419 |
| By: | Gert Brunekreeft; Heike Worm |
| Abstract: | Ziel einer output-orientierten Regulierung (OOR) ist die gezielte Anreizung vorgegebener Leistungsziele (Outputs), die im Rahmen einer ansonsten vorwiegend auf Kosteneffizienz ausgerichteten Anreizregulierung nicht im gesellschaftlich erwünschten Maße gefördert werden. Sie ergänzt die im Kern fortbestehende Anreizregulierung durch Erlöselemente, die an das Erreichen spezifischer Leistungsziele gekoppelt sind. In Deutschland wurde diese Thematik von der Bundesnetzagentur mit einer sogenannten Energiewendekompetenz (EWK) aufgegriffen. In diesem Beitrag besprechen wir für Strom- und Gasnetze mögliche Anwendungsbereiche für OOR/EWK-Elemente. Aufgrund der Aktualität wurden folgende Elemente vertieft. Für Stromnetze: 1. Geschwindigkeit von Netzanschlüssen, 2. Entwicklung von Smart Grids und 3. Standardisierung. Für Gasnetze: 1. Vermeidung von Gasverlusten, 2. THG-Emissionsvermeidung und 3. Stakeholderbeteiligung. |
| Keywords: | Regulierung, output-orientiert, Energiewendekompetenz, Energienetze |
| JEL: | L12 L51 L94 L95 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:bei:00bewp:0049 |
| By: | Marc Bourreau; Axel Gautier |
| Abstract: | In this paper, we consider two platforms that compete for the development of a new product to integrate into their ecosystems. The new product can be developed either inhouse by the platforms or by an independent startup active only in the technology market. The presence of the startup affects the platforms’ R&D efforts through an insurance effect, which reduces the cost of failure in innovation, and a competition effect, which diminishes the returns to innovation. The magnitude of these effects depends on the attitude of the competition authorities towards the acquisition of the startup by one of the platforms. We show that allowing acquisitions stimulates platform innovation, but at the cost of a more concentrated market structure. We also compare the funding of the startup by independent venture capitalists or by the platforms themselves, and investigate how the merger regime influences the direction of the startup’s innovation. |
| Keywords: | innovation, startup acquisitions, mergers, digital, big tech, competition policy |
| JEL: | D43 G34 K21 L40 L86 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11569 |
| By: | Anastasia Antsygina; Ekaterina Kazakova; Alexander Tarasov |
| Abstract: | We develop a model of spatial competition with two heterogeneous in their market access chains, choosing between third-degree price discrimination in their local markets (flexible pricing) and a unified chain-level price (uniform pricing). The markets are interconnected with each other via consumers who commute between them and can make purchases in locations where they do not reside. Our model supports an asymmetric equilibrium, in which the two pricing strategies co-exist: the larger chain uses uniform pricing, while the smaller chain employs flexible pricing. We also find that the chains never choose the pricing strategies that maximize the total consumer surplus. |
| Keywords: | spatial competition, price discrimination, uniform pricing, commuters |
| JEL: | D21 L11 L20 R32 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11576 |
| By: | Deza Matias; Saracho Abril |
| Abstract: | Energy price elasticities for residential consumers is probably the most important variable to define policies regarding concerns about sustainability, efficiency and equitability. However, estimating consumer response to price changes is complex due to simultaneous demand shocks, regulatory constraints and complex consumer response for this market. This paper estimates the short- and long-term price elasticity of residential energy consumption using a natural experiment from the implementation of the Social Electricity Tariff in Tucumán, Argentina. This policy, aimed at assisting vulnerable households, provided a subsidy to the fixed charge of the electricity tariff. A difference-in-differences approach is employed, using non-beneficiary households as the control group. This allows us to calculate the price elasticity of electricity consumption across different consumption levels. Our findings show that, in general, the price elasticity of consumption is inelastic, with a more pronounced effect among lower consumption users. Additionally, the long-term effect is greater for highly vulnerable users. This study provides the first estimates of short- and long-term price elasticity for Latin America using this identification strategy, offering valuable insights for the design of energy policies. |
| JEL: | Q4 H3 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:aep:anales:4727 |
| By: | Federico M. Accursi; Raúl Bajo-Buenestado; Raul Bajo-Buenestado |
| Abstract: | Cooperatives, formally established to enhance social welfare and local economic development, often face pressures that divert them from these foundational goals and lead to their transformation into profit-driven entities that exploit market power. Leveraging an unexpected tax change following a vote of no confidence, we examine the pass-through to retail prices as a test for market power, using data from over 250 cooperatives operating in the Spanish fuel market. Our findings reveal a complete pass-through of the tax increase to retail prices. Additionally, descriptive evidence suggests that cooperatives consistently offer lower prices than their for-profit counterparts. These results are indicative of the absence of markup adjustments and market power exertion among cooperatives and are consistent with their prioritization of consumer welfare over profit maximization, thereby justifying the regulatory advantages they enjoy. |
| Keywords: | cooperatives, pass-through to prices, market power, firm conduct, retail fuel market |
| JEL: | D22 H22 H32 L21 L29 P13 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11473 |
| By: | Paul Ghelasi; Florian Ziel |
| Abstract: | Power prices can be forecasted using data-driven models or fundamental models. Data-driven models learn from historical patterns, while fundamental models simulate electricity markets. Traditionally, fundamental models have been too computationally demanding to allow for intrinsic parameter estimation or frequent updates, which are essential for short-term forecasting. In this paper, we propose a novel data-driven fundamental model that combines the strengths of both approaches. We estimate the parameters of a fully fundamental merit order model using historical data, similar to how data-driven models work. This removes the need for fixed technical parameters or expert assumptions, allowing most parameters to be calibrated directly to observations. The model is efficient enough for quick parameter estimation and forecast generation. We apply it to forecast German day-ahead electricity prices and demonstrate that it outperforms both classical fundamental and purely data-driven models. The hybrid model effectively captures price volatility and sequential price clusters, which are becoming increasingly important with the expansion of renewable energy sources. It also provides valuable insights, such as fuel switches, marginal power plant contributions, estimated parameters, dispatched plants, and power generation. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2501.02963 |
| By: | Stronzik, Marcus; Wissner, Matthias |
| Abstract: | Der generelle X-Faktor ist neben dem Effizienzvergleich ein wesentliches Element im Kontext einer Anreizregulierung, die Wettbewerb simulieren will. Der generelle X-Faktor übernimmt dabei die Funktion, dass Netzbetreiber wie Unternehmen im Wettbewerb durch technischen Fortschritt bedingte Produktivitätsveränderungen während einer Regulierungsperiode an die Netzkunden weitergeben. Im Rahmen dieser Studie wurden mit Doppelberücksichtigungen bei den Kapitalkosten in Form einer doppelten Inflationierung bzw. einer doppelten Produktivitätsvorgabe sowie Änderungen der Versorgungsaufgabe während einer Regulierungsperiode einige Aspekte näher beleuchtet, die im gegenwärtigen Design der deutschen Anreizregulierung für Energienetze als nicht unproblematisch eingestuft werden können. Im Hinblick auf mögliche Weiterentwicklungen des Produktivitätsfaktors konnte keiner der in der Diskussion befindlichen Vorschläge als eindeutig vorteilhaft gegenüber den anderen Varianten identifiziert werden. Die Wahl einer möglichen Anpassung hängt entscheidend von der Schwerpunktsetzung und Gewichtung der einzelnen Bewertungskriterien sowie Einschätzungen über die zukünftigen Transformationsprozesse (Dekarbonisierung, Dezentralisierung, Digitalisierung und Ausstieg aus dem Erdgas) und Rahmenbedingungen der Netzwirtschaft ab. Einige Punkte - wie z. B. der der deutschen Anreizregulierung inhärente Zeitverzug sowie der funktionale Zusammenhang beim auf dem Verbraucherpreisindex und dem Produktivitätsfaktor basierenden Fortschreibungsterm für die Kosten des Basisjahres - lassen sich unabhängig von der Frage, wie der generelle X-Faktors bestimmt wird und worauf er angewendet wird (operative Kosten oder Gesamtkosten), bereinigen. Ein Blick nach Österreich offeriert eine weitere bedenkenswerte Modifikation, die Einführung einer effizienzabhängigen Rendite auf die Kapitalkosten. Im Gegensatz zum derzeitigen Abbaupfad für Ineffizienzen in Deutschland würde sich die effizienzabhängige Rendite unmittelbar auf die Eigenkapitalverzinsung der Netzbetreiber auswirken, woraus ein starker Anreiz für effizientes Investitionsverhalten resultieren kann mit entsprechenden Implikationen für die Ausgestaltungsmöglichkeiten beim Produktivitätsfaktor. Unabhängig von der zukünftigen Ausgestaltung des generellen X-Faktors ist zudem die Wichtigkeit der Beibehaltung eines auf den Gesamtkosten aufsetzenden Effizienzvergleichs herauszuheben. Nur in Verbindung mit dem Effizienzvergleich kann es zu sachgerechten Weiterentwicklungen des generellen X-Faktors kommen. |
| Abstract: | Alongside the efficiency benchmarking, the general X-factor is one of the key elements in the context of incentive regulation that aims to simulate competition. The general Xfactor takes over the role of ensuring that network operators, like companies acting on competitive markets, pass on productivity changes caused by technical progress to network customers during a regulatory period. With regard to the German incentive regulation of energy networks, the design of the general X-factor is currently under review. As part of this study, we analysed in more detail some crucial aspects, such as double adjustments of capital costs (double inflation and double productivity requirements) as well as changes of the supply task of network operators during regulatory periods. These issues can be considered as problematic under the current regime. With regard to possible adjustments of the productivity factor, none of the proposals under discussion could be identified as clearly favourable compared to the other alternatives. The choice of future adjustments of the general X-Factor depends decisively on the focus and weighting of the evaluation criteria. Furthermore, the future transformation process of the energy sector (decarbonisation, decentralisation, digitalisation and phasing out of natural gas) as well as other framework conditions have to be taken into account. Some points - such as the time lag associated with the German scheme and the functional form of the update term for the base year costs, which is based on the consumer price index and the productivity factor - can be adjusted independently of the choice of how the general X-factor is determined and to what it is applied (operating costs or total costs). A look at Austria offers another modification worth considering, the introduction of an efficiency-dependent return on capital costs. In contrast to the current reduction path for inefficiencies in Germany, the efficiency-dependent return would have a direct effect on the return on equity of grid operators, which could result in strong incentives for efficient investment behaviour with corresponding implications for the adjustment options for the productivity factor. Irrespective of the future design of the general X-factor, the importance of maintaining an efficiency benchmarking based on total costs must also be emphasised. Appropriate further development of the general X-factor can only be achieved in conjunction with such an efficiency benchmarking. |
| Keywords: | Anreizregulierung, Netzinfrastruktur, Technischer Fortschritt, Produktivität, Kapitalkosten, Deutschland, Österreich |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:wikdps:308037 |
| By: | Knips, Julian; Wernick, Christian |
| Abstract: | Der vorliegende Diskussionsbeitrag stellt die ökonomischen Hintergründe und Anreize beim Vertrieb von leitungsgebundenen Breitbandanschlüssen über Preisvergleichsportale dar. Des Weiteren beschäftigt er sich mit der Provisionsstruktur und der Bedeutung der Portale für den Breitbandmarkt und der Wichtigkeit einzelner TKUs für die Portale. Den Abschluss bildet ein Produkt- und Preisvergleich zwischen den Vergleichsportalen und den Anbieterwebseiten. Die Vergleichsportallandschaft in Deutschland ist stark von zwei großen Anbietern geprägt, Check24 und Verivox. Daneben haben viele Webseiten Preisvergleiche für Breitbandprodukte im Angebot, diese binden jedoch häufig nur die Tarifsuchen der großen Portale ein. Bei kleineren Portalen mit eigener Tarifsuche findet oft eine Verengung auf wenige große Breitbandanbieter statt. Das Geschäftsmodell der Vergleichsportale basiert im Wesentlichen auf Provisionen, weitere (aber deutlich weniger relevante) Erlösquellen sind Werbung und der Verkauf aggregierter Marktdaten. Im Vergleich zu anderen Wirtschaftsbereichen, die von Vergleichsportalen abgedeckt werden, sind die Cashbacks und Provisionen bei Breitbandverträgen relativ hoch. Unsere Analysen deuten darauf hin, dass die TDG und Vodafone für die Vergleichsportale die beiden mit weitem Abstand relevantesten TK-Anbieter sind. Regionale bzw. auf Glasfaser fokussierte Anbieter spielen, auch in Summe, (bisher) nur eine geringe Rolle. Bei den Preisvergleichen zeigt sich, dass es nicht "das günstigste" Vergleichsportal gibt. Insbesondere bei von Infrastruktureigentümern angebotenen Produkten auf Bandbreiten zwischen 50 und 250 Mbit/s im Download, sind die auf 24 Monate gerechneten Preise durch Einmal-Cashbacks auf Vergleichsportalen fast immer niedriger als auf den Anbieterwebseiten. Die höchsten Cashbacks werden von eben diesen Infrastruktureigentümern auf Legacy-Infrastrukturen ausgeschüttet. FTTB/H-Tarife werden zwar zumindest von Check24 und Verivox in wachsendem Umfang vermarktet, die Cashbacks sind hier jedoch in der Regel deutlich niedriger als bei Produkten über xDSL und Kabel. |
| Abstract: | This discussion paper presents the economic background and incentives for the sale of fixed broadband products via price comparison tools. It also looks at the commission structure and the significance of these tools for the broadband market and the importance of individual broadband operators for the respective comparison websites. It concludes with a product and price comparison between the comparison tools and the provider websites. The comparison tool landscape in Germany is strongly characterised by two major websites, Check24 and Verivox. In addition, many websites offer price comparisons for broadband products, but these often only include the tariff searches of the larger websites. Smaller platforms with their own tariff search typically narrow their offer down to a few large broadband providers. The business model of the comparison tools is essentially based on commissions; other (but significantly less relevant) sources of revenue are advertising and the sale of aggregated market data. Compared to other economic sectors covered by comparison tools, the cashbacks and commissions for broadband contracts are relatively high. Our analyses indicate that TDG and Vodafone are by far the two most relevant telecommunications providers for the comparison platforms. Regional providers or providers focusing on fibre play only a minor role (so far), even in total. The price comparisons show that there is no such thing as 'the least expensive' comparison tools. Particularly for products offered by infrastructure owners on bandwidths between 50 and 250 Mbps in download, the prices calculated over 24 months are almost always lower on comparison websites than on the provider websites due to one-off cashbacks. The highest cashbacks are paid out by these same infrastructure owners on legacy infrastructures. Although FTTB/H tariffs are being marketed to an increasing extent, at least by Check24 and Verivox, the cashbacks here are generally lower than for products via xDSL and cable. |
| Keywords: | Digitale Plattform, Vergleich, Breitbandkommunikation, Telekommunikationspreis, Deutschland |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:wikdps:308069 |
| By: | Brueckner, Markus; Haidi Hong, Haidi; Vespignani, Joaquin |
| Abstract: | This paper presents estimates of the effects that government regulation of diesel and petrol prices has on GDP growth. Theory suggests that when supply curves are convex, a decrease in the regulatory price has a larger effect on output than a tantamount increase. Motivated by this theoretical insight, we specify VAR models with asymmetric effects of positive and negative changes in the regulatory prices of diesel and petrol. We estimate the VAR models on quarterly data from China’s national accounts during the period Q1 1998 to Q4 2018. Our main findings are that: (i) negative growth rates of regulatory diesel and petrol prices significantly reduce GDP growth; (ii) positive growth rates of regulatory diesel and petrol prices have a positive, but quantitatively small and statistically insignificant effect on GDP growth. |
| Keywords: | GDP growth, energy price regulation |
| JEL: | E0 E00 Q4 Q43 |
| Date: | 2023–06–06 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122869 |
| By: | Hanzhe Xing; Stuart Scott; John Miles |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:enp:wpaper:eprg2418 |
| By: | Doron Sayag (Department of Economics, Bar-Ilan University, Israel); Avichai Snir (Department of Economics, Bar-Ilan University, Israel); Daniel Levy (Department of Economics, Bar-Ilan University, Israel; Department of Economics, Emory University, USA; ICEA; ISET, TSU; Rimini Centre for Economic Analysis) |
| Abstract: | We test the predictions of the sticky information model using a survey dataset by comparing the shoppers' accuracy in recalling the prices of regulated and comparable unregulated products. Regulated product prices change less frequently, vary less across stores and between brands, and are sold more than comparable but unregulated product prices. Therefore, shoppers would be expected to recall the regulated product prices more accurately. However, we find that shoppers are better at recalling the prices of unregulated products, in line with the sticky information model which predicts that shoppers will be more attentive to prices that change more frequently. |
| Keywords: | sticky information, cost and benefit of information, information gathering, information processing, price cap, price regulation, price controls, price adjustment, sticky prices, rigid prices |
| JEL: | D12 D83 D91 E31 K20 L11 L16 L50 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:rim:rimwps:25-02 |
| By: | Alzate, David (World Bank); Carranza, Eliana (World Bank); Duran-Franch, Joana (OECD); Packard, Truman (World Bank); Proffen, Celina (World Bank) |
| Abstract: | This paper provides an extensive review of the literatures on product and labor market regulations and their effects on labor market outcomes. It uncovers the interdependence of these two types of regulations, an area that has received limited attention in research. The paper highlights why understanding the intricate relationship between product and labor market regulations is crucial for effective policy making and advancement of labor market conditions. The findings strongly discourage adopting uniform policies and advocate for tailored approaches to labor market promotion. |
| Keywords: | labor market regulation, product market policy, employment, wage, productivity, worker protection, firm competition, public policy |
| JEL: | J20 J30 J8 K2 L5 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17536 |
| By: | Hülsewig, Oliver (Munich University of Applied Sciences); Steinbach, Armin (HEC Paris) |
| Abstract: | Banking regulation invites banks to gamble when buying government bonds that regulators consider to be risk-free. The adverse effects on financial stability are known. In turn, this study shows that governments have an incentive to use banking regulation in order to enhance their fiscal leeway. We examine an unintended side-effect of banking regulation, namely the zero-risk weighting of sovereign bonds, which leads to lower costs of borrowing, encourages over-borrowing, and undermines constitutional fiscal rules. Our empirical analysis, by estimating local projections, examines the reaction of the fiscal balance in euro area periphery countries to a restrictive macroprudential capital regulation shock. We find that, unlike in the US, euro area banks’ share of domestic government bond holdings increases after the shock. This feeds into cheaper and more government borrowing laying bare the undesired interaction between banking regulation and constitutional rules. By comparing the US with the European Union, there is plausibility that the US implemented regulatory treatment and fiscal constitutional rules in a fashion that is better able to minimize the negative spillovers from banking regulation on sovereign borrowing. By contrast, the EU would benefit from more risk-based macroprudential regulation and a more credible constitutional no-bailout regime for sub-federal entities. |
| Keywords: | banking regulation; constitutional fiscal rules; sovereign-bank nexus |
| JEL: | C33 G28 H63 K33 |
| Date: | 2024–07–09 |
| URL: | https://d.repec.org/n?u=RePEc:ebg:heccah:1526 |
| By: | Brekke, Kurt R. (Dept. of Economics, Norwegian School of Economics and Business Administration); Dalen, Dag Morten (Dept. of Economics, BI Norwegian Business School); Straume, Odd Rune (Dept. of Economics, University of Bergen) |
| Abstract: | Pharmaceutical expenditures are rising rapidly, driven in part by the innovation of highly effective but very expensive drug therapies that treat multiple diseases. While these drugs offer substantial health benefits, payers face a critical trade-off between cost containment and access to new medicines. A key policy question is whether producers should be restricted to uniform pricing or allowed to use indication-based pricing, where prices vary across patient groups. We analyse how this choice affects drug producers' incentives to invest in new indications, their pricing strategies, and the resulting surplus for health plans. In a monopoly setting, indication-based pricing yields higher profits and thus strengthens incentives to invest in new indications, while the payer prefers uniform pricing unless the fixed investment costs cannot be recouped. The novelty of our study lies in showing that monopoly-based insights may not hold under competition. Specifically, we identify a softening-of-competition effect, where a uniform pricing restriction serves as a credible commitment to raise prices in the competitive market. In this case, the health plan generally favours indication-based pricing to reduce costs. However, an exception arises, where both parties prefer uniform pricing, if the uniform price generates significant health gains through demand expansion in the original monopoly market. Our findings suggest that neither pricing scheme is universally optimal, underscoring the need for case-by-case assessments across drug classes. |
| Keywords: | Pharmaceuticals; Innovation incentives; Payer pricing schemes |
| JEL: | I18 L13 L65 O31 |
| Date: | 2025–01–08 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:nhheco:2025_001 |
| By: | Sergei Kichko; Alina Ozhegova; Alexander Tarasov |
| Abstract: | In this paper, we explore how heterogeneous firms decide on vertical and horizontal qualities of their products. We show that if increasing the product qualities appears to be relatively costly, more productive firms choose higher vertical quality but lower horizontal quality. We also document distortions that arise in our framework. Specifically, we find that in the market equilibrium, firms tend to underinvest in horizontal quality but overinvest in vertical quality compared to the first best allocation. Using data from pizzerias in Oslo, Norway, we provide a calibration exercise to estimate welfare losses due to the quality distortions. |
| Keywords: | monopolistic competition, vertical quality, horizontal quality, welfare |
| JEL: | D43 L13 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11472 |
| By: | Snir, Avichai; Levy, Daniel; Levy, Dudi; Chen, Haipeng (Allan) |
| Abstract: | We report the results of surveys we conducted in the US and Israel in 2020, a time when many prices increased following the spread of the COVID-19 pandemic. To assess respondents’ fairness perceptions of price increases, we focus on goods whose prices have increased during the pandemic, including some essential goods. Consistent with the principle of dual entitlement, we find that respondents perceive price increases as fairer if they are due to cost shocks than if they are due to demand shocks. However, we also find large differences across the two populations, as well as across goods. |
| Keywords: | Dual Entitlement; Fairness Perceptions; Consumer Antagonism; COVID-19; Pandemic; Price Level; Price Adjustment; Price Increase; Price Rigidity; Sticky Prices |
| JEL: | D90 E3 E31 M31 |
| Date: | 2024–12–17 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123071 |
| By: | Amore, Mario Daniele (HEC Paris); Le Coq, Chloe (Stockholm School of Economics); Schwenen, Sebastian (Technische Universität München) |
| Abstract: | Effective regulation relies on monitoring the compliance of regulated firms. Using data on regulatory inspections and employees’ emergency training in the universe of US nuclear plants, we investigate how regulatory monitoring drives compliance with nuclear safety procedures. We find that nuclear plants farther from the regulator’s regional office exhibit more safety incidents, and their employees are less trained to deal with emergencies. These spatial differences exist despite regulatory monitoring is conducted daily through resident inspectors (i.e., monitoring is continuous and decentralized). The matching between resident inspectors and nuclear plants helps to explain why differences in safety exist: less experienced inspectors are assigned to more distant nuclear plants, and this assignment leads to a decline in employees’ emergency training. Hence, attaining safety through decentralized monitoring requires assigning experienced inspectors to plants that are insulated from the regulator. |
| Keywords: | Safety; Compliance; Nuclear Plants; Regulation; Geography; Training |
| JEL: | J24 Q42 Q48 |
| Date: | 2024–04–25 |
| URL: | https://d.repec.org/n?u=RePEc:ebg:heccah:1520 |
| By: | Kevin Ducbao Tran; Leonardo Madio; Michelangelo Rossi; Mark J. Tremblay |
| Abstract: | This paper investigates the impact of price transparency on equilibrium prices and fees by considering a policy change implemented by Airbnb that affected the transparency of cleaning fees for IP addresses from the European Union (EU). Using a difference-in-differences approach, we find a reduction in cleaning fees of 2-4%. Consistent with our theoretical framework, we also find that listings without a cleaning fee, something that is common on Airbnb, appear more affordable after the policy change and react by increasing their nightly price by 5-6%. We argue that this result is driven by some hosts learning about the full prices of their rivals due to the transparency policy, finding themselves more affordable. This analysis uncovers a new mechanism through which greater price transparency can lead to price increases. |
| Keywords: | price transparency, obfuscation, cleaning fees |
| JEL: | D40 D80 L10 L20 L40 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11574 |
| By: | Choudhury, Nafay |
| JEL: | F3 G3 |
| Date: | 2022–12–31 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:123576 |
| By: | Moloney, Niamh |
| Abstract: | This article reflects on the effectiveness of European Union (EU) financial market regulation, a decade or so after the closure of the EU’s massive financial-crisis-era reform programme. To do so, it considers the first significant test of the financial-crisis-era reforms: the March 2020 period of acutely elevated financial stability risk as the COVID-19 pandemic intensified, global markets roiled, and the investment fund sector experienced large-scale disruption. It relates the EU’s broadly successful management of this period to, first, the resilience of the legislative choices made and refined over the financial crisis era as regards investment fund regulation and, secondly, to technocratic action, by the European Securities and Markets Authority (ESMA) and the European Systemic Risk Board (ESRB), that facilitated rule amplification, risk monitoring, supervisory coordination, and supervisory convergence and thereby supported the earlier legislative choices. Drawing on the March 2020 experience, the article goes on to consider the capacity of EU financial market regulation more generally to manage what are increasingly dynamic risks to financial market stability. It identifies a strengthening of the EU’s capacity in this regard, but also persistent and intractable risks to this capacity, including as regards legitimation. |
| Keywords: | EU financial market regulation; Covid-19; investment funds; financial stability; ESMA; liquidity; UCITS; AIFMD; soft law |
| JEL: | G18 |
| Date: | 2023–11–21 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:120362 |
| By: | Ockenfels, Martin; Plückebaum, Thomas; Kulenkampff, Gabriele; Zoz, Konrad; Kiesewetter, Wolfgang |
| Abstract: | Fixed Wireless Access (FWA) ist der Ersatz eines Festnetzanschlusses durch eine Funklösung. Er wird im Kontext des angestrebten Gigabit-Breitbandausbaus in der Fläche, in dünn besiedelten Gebieten, grundsätzlich als eine Alternative zum teuren Glasfaserausbau angesehen, um Endkunden mit schnellem Internet zu versorgen. Allerdings gibt es hier auch Grenzen der Leistungsfähigkeit. Für eine FWA-Anbindung können unterschiedliche Trägerfrequenzen zum Einsatz kommen. Die möglichen Trägerfrequenzen unterscheiden sich hinsichtlich ihrer physikalischen Eigenschaften, der Reichweiten und der für den Frequenzbereich der Trägerfrequenz verfügbaren Bandbreite zur Datenübertragung. Wesentlich ist in diesem Kontext, ob die Möglichkeit besteht, Sender und Empfänger mit Sichtverbindung (Line-of-Sight, LOS) aufbauen zu können oder ob diese Möglichkeit nicht besteht (Non-Line-of-Sight, NLOS). In diesem Forschungsprojekt wurde untersucht, in welchem Rahmen sich über FWA einerseits eine Grundversorgung mit 10 Mbps und andererseits eine Gigabitversorgung mit 1 Gbps aus ökonomischer Sicht realisieren lässt, und zwar abhängig von der Dichte der Besiedlung. Um eine funkbasierte Versorgung mit den hier zu betrachtenden Zieldatenübertragungsraten zu ermöglichen, bedarf es des Einsatzes entsprechender Trägerfrequenzen und Bandbreiten. Die damit verbundenen Investitionen in FWA Anschlüsse vergleichen wir mit Investitionen, die für eine FTTH-Versorgung zu tätigen sind. Die möglichen Reichweiten (Radien) der Funknetze wurden mit dem WIK-Propagation-Modell bestimmt. Die darauf aufbauenden Vergleiche der benötigten Investitionen für FWA gegenüber FTTH wurden mit dem WIK-Investitions-Modell berechnet und dann miteinander verglichen [...] In der Praxis wird jede individuelle Konstellation für den Einsatz von FWA bewertet werden müssen. Allgemeingültige Aussagen erscheinen nicht möglich, da in der praktischen Realisierung auch die hier nicht betrachteten Umwelteinflüsse (Topologie, Vegetation, Bebauung, Möglichkeit für Luftverkabelung, vorhandene Masten, Anzahl Nutzer in der Funkzelle, Möglichkeit einer Sichtverbindung etc.) immer einen relevanten Einfluss auf die Leistungsfähigkeit einer funkbasierten Lösung haben und beachtet werden müssen. |
| Abstract: | Fixed Wireless Access (FWA) is the replacement of a landline with a wireless solution. In the context of the planned gigabit broadband expansion in the area, in sparsely populated areas, it is generally seen as an alternative to expensive fiber-optic expansion in order to provide end customers with fast internet. However, there are also limits to performance here. Different carrier frequencies can be used for an FWA connection. The possible carrier frequencies differ in terms of their physical properties, the ranges and the bandwidth available for data transmission for the frequency range of the carrier frequency. In this context, it is essential whether it is possible to set up transmitters and receivers with lineof-sight (LOS) or whether this possibility does not exist (non-line-of-sight, NLOS). In this research project, it was investigated in which framework a basic supply with 10 Mbps on the one hand and a gigabit supply with 1 Gbps on the other hand can be realized via FWA from an economic point of view, depending on the density of the settlement. In order to enable a radio-based supply with the target data transmission rates to be considered here, the use of appropriate carrier frequencies and bandwidths is required. We compare the associated investments in FWA connections with investments that have to be made for FTTH coverage [...] In practice, each individual constellation for the use of FWA will have to be evaluated. Generally valid statements do not seem possible, since in practical implementation the environmental influences not considered here (topology, vegetation, buildings, possibility for aerial cabling, existing masts, number of users in the radio cell, possibility of line of sight, etc.) always have a relevant influence on the performance of a radio-based solution and must be taken into account. |
| Keywords: | Breitbandkommunikation, Funktechnik, Local Area Network, Deutschland |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:wikdps:308068 |
| By: | Wernick, Christian; Knips, Julian; Lachmann, Menessa Ricarda; Strube Martins, Sonia |
| Abstract: | Ziel der Gigabitstrategie der Bundesregierung ist ein flächendeckender Glasfaserausbau bis 2030. Voraussetzung hierfür ist eine schnelle und möglichst lückenlose Erschließung der einzelnen Ausbau-Cluster in Deutschland und idealerweise ein flächendeckender Ausbau von Homes Connected direkt im initialen Ausbau. Vor diesem Hintergrund ist eines der dominierenden Themen der aktuellen Debatte beim Glasfaserausbau die wachsende Schere zwischen der Zahl der Homes Passed und Homes Connected. Im vorliegenden Diskussionsbeitrag werden die Ursachen für diese Entwicklung sowie die Implikationen, die sich daraus für den FTTH-Ausbau in Deutschland ergeben, untersucht [...] Ein aus volkswirtschaftlicher Sicht effizienter Netzausbau erfordert Rahmenbedingungen, die eine Stärkung der Nachfrage fördern, ineffiziente Ausbaustrategien unterbinden sowie Hemmnisse für den Ausbau der Haus- und Wohnungsanschlüsse abbauen. Der Produkt-, Preis- und Qualitätswettbewerb stellen zentrale Treiber der Nachfrage dar. Von einem funktionierenden Vorleistungsmarkt für FTTB/H-Produkte könnten starke Impulse für die Stärkung der Nachfrage ausgehen. Informations- und Werbekampagnen unter Beteiligung der öffentlichen Hand können Aufmerksamkeit für das Thema Glasfaserausbau schaffen und einen Beitrag zur Stärkung der Nachfrage sowohl nach Glasfaseranschlüssen als auch Glasfaser-basierten Breitbandprodukten leisten. Auch Thema Kupfer-Glas-Migration hat mit Blick auf die Schere eine sehr hohe Relevanz: Da vielen Endkunden und Gebäudeeigentümern heute noch nicht bewusst ist, dass die Kupfernetze in den kommenden Jahren abgeschaltet werden, könnte sich die Ankündigung eines verbindlichen Kupferabschaltungstermins positiv auf die Nachfrage auswirken. Ein ineffizienter Überbau sollte unterbunden werden. Das Monitoring des Doppelausbaus könnte genutzt werden für eine wettbewerbspolitische Bewertung und entsprechende Schlussfolgerungen. Eine effektive Förderung des Ausbaus von Homes Connected/Activated erfordert schließlich den Abbau der Hemmnisse für den Ausbau des Hausstichs und der gebäudeinternen Infrastruktur. |
| Abstract: | The goal of the German government's gigabit strategy is to achieve a nationwide fibre optic expansion by 2030. This requires a quick and gapless fibre deployment in the individual roll-out clusters and, ideally, a nationwide deployment of Homes Connected in the initial roll-out. Against this backdrop, the growing gap between the number of Homes Passed and Homes Connected is one of the key topics in the context of the current debate on fibre optic deployment in Germany. The study at hand analyses the reasons for this development and discusses its implications for the FTTH expansion in Germany [...] From an economic perspective, efficient network deployment requires framework conditions that promote a strengthening of demand, prevent inefficient rollout strategies and remove obstacles to the expansion of connections to buildings and dwellings. Product, price and quality competition represent key drivers of demand. A functioning wholesale market for FTTB/H products could provide a strong impetus for the strengthening of demand. Information and advertising campaigns involving the public sector may create awareness for the topic of fibre optic roll-out and contribute to increase the demand for both fibre optic connections and fibre optic-based broadband products. Copper switch-off is also highly relevant with regard to the gap: As many end customers and building owners are not yet aware that the copper networks will be switched off in the coming years, the announcement of a binding copper switch-off date could have a positive impact on the demand for fibre. Inefficient overbuilding should be prevented. The monitoring of the double rollout could be used for a competition policy assessment and corresponding conclusions. Finally, an effective stimulation of the deployment of Homes Connected/Activated requires the removal of barriers, which harden the deployment of connections to the buildings and the roll-out of in-building infrastructure. |
| Keywords: | Glasfaserkommunikation, Wohnung, Telekommunikationspolitik, Deutschland |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:wikdps:308070 |
| By: | Lucidi, Stefano; Nett, Lorenz; Sörries, Bernd |
| Abstract: | Die Mobilfunknetzbetreiber stehen vor der Herausforderung, das knappe zugeteilte Frequenzportfolio für den drahtlosen Netzzugang für alle eingesetzten Mobilfunkstandards betriebswirtschaftlich effizient zu nutzen. Aufgrund der technologieneutralen Nutzungsbestimmungen der Frequenzen können die Mobilfunknetzbetreiber dies frei entscheiden. Derzeit betreiben die Mobilfunknetzbetreiber Netze für die drei Mobilfunkstandards 2G, 4G und 5G. Im Jahr 2021 haben die etablierten Mobilfunknetzbetreiber in Deutschland ihre 3G-Netze abgeschaltet. Mit der Ankündigung der Deutschen Telekom, das 2G-Netz voraussichtlich im Juni 2028 abzuschalten, ist nun der Prozess gestartet worden, eine weitere Funktechnologie aus dem Markt zu nehmen. Die Abschaltung von 2G ist aus Sicht der Mobilfunknetzbetreiber vor allem darin motiviert, dass die bisher für 2G genutzten Frequenzen (insbesondere die 900-MHz-Frequenzen aufgrund ihrer Ausbreitungseigenschaften) für 4G/5G-Dienste eingesetzt werden können. Die Nutzung der Frequenzen für 2G-Dienste ist in den vergangenen Jahren in unterschiedlichen Umfang bei den etablierten Mobilfunknetzbetreibern rückläufig. Sofern über die Frequenzen 4G/5G-Dienste angeboten werden, erhöhen sich die Netzkapazitäten ohne eine Verdichtung von Sendeanlagen. Angesichts einer weiter steigenden Nachfrage nach mobilen Breitbanddiensten, ist eine Neunutzung der fraglichen Frequenzen betriebswirtschaftlich rational. Bis zur Abschaltung der 2G-Netze ist die geographische Verfügbarkeit von 4G/5G noch zu verbessern. Die Flächenabdeckung in Deutschland ist bei 4G derzeit bei allen Mobilfunknetzbetreibern im Vergleich zu 2G geringer. Zum Zeitpunkt der 2G-Abschaltungen soll dieses Delta geschlossen sein. Dann stehen für die heute über 2G angebotenen Dienste flächendeckend alternative Funklösungen zur Verfügung. Die Abschaltung soll nicht zu neuen Funklöchern führen. Bis zum Zeitpunkt der Abschaltung müssen Nutzer ihre 2G-Endgeräte austauschen. Im Massenmarkt sind reine 2G-Endgeräte nur noch ein kleines Nischensegment. Im Bereich von IoT-Diensten müssen voraussichtlich größere Volumina an Geräten getauscht werden. Aufgrund der Kosten für den Austausch und/oder der Anzahl der verwendeten 2GModule wird insbesondere der eCall als Anwendungsfall genannt, dessen Migration eine Herausforderung darstellt. Die rechtzeitige Ankündigung der Abschaltung soll hier den Nutzern die zum Austausch notwendige Zeit verschaffen. Internationale Erfahrungen zeigen, dass es keine Dienste gibt, die einer Abschaltung der 2G-Netze im Wege stehen. |
| Abstract: | Mobile network operators are faced with the challenge of utilising the scarce assigned frequency portfolio for wireless network access for all mobile communications standards used in an economically efficient manner. Due to the technology-neutral utilisation regulations of the frequencies, the mobile network operators are free to decide this. Mobile network operators currently operate networks for the three mobile communications standards 2G, 4G and 5G. In 2021, the established mobile network operators in Germany switched off their 3G networks. With Deutsche Telekom's announcement that it expects to switch off its 2G network in June 2028, the process of removing another wireless technology from the market has now begun. From the perspective of mobile network operators, the main reason for switching off 2G is that the frequencies previously used for 2G (in particular the 900 MHz frequencies due to their propagation characteristics) can be used for 4G/5G services. The use of frequencies for 2G services has declined to varying degrees in recent years among the established mobile network operators. If 4G/5G services are offered via the frequencies, the network capacities will increase without a densification of radio transmission sites. In view of a further increase in demand for mobile broadband services, a new utilisation of the frequencies in question is economically rational. Until the 2G networks are switched off, the geographical availability of 4G/5G still needs to be improved. Coverage in Germany is currently lower for 4G than for 2G for all mobile network operators. This delta should be closed by the time 2G is switched off. Alternative radio solutions will then be available nationwide for the services currently offered via 2G. The switch-off should not lead to new mobile dead spots. Until the switch-off date, users will have to replace their 2G devices. In the mass market, pure 2G devices are only a small niche segment. In the area of IoT services, larger volumes of devices will probably have to be replaced. Due to the cost of replacement and/or the number of 2G modules used, in particular eCall are cited as use cases whose migration poses a challenge. The timely announcement of the switch-off is intended to give users the time they need to replace their devices. International experience shows that there are no services that stand in the way of switching off the 2G networks. |
| Keywords: | Mobilkommunikation, Mobilfunkstandard, Deutschland, Industrieländer |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:wikdps:308064 |
| By: | Mills, Stuart |
| Abstract: | Libertarian paternalism (LP) draws on behavioral economics to advocate for noncoercive, nonfiscal policy interventions to improve individual well-being. However, growing criticism is encouraging behavioral policymaking—long dominated by LP approaches—to consider more structural and fiscally impactful interventions as valid responses to behavioral findings. Keynesian social philosophy allows behavioral policymaking to incorporate these new perspectives alongside existing LP approaches. |
| JEL: | I38 D91 |
| Date: | 2024–11–29 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126299 |
| By: | Rila, R.; Mithursan, A.; Samaranayake, D.I.J. |
| Abstract: | The study makes an effort to experiment the effectiveness of green nudges in promoting water conservation and fostering a sustainability mindset in an educational setting. The objective of the study is to explore the potential for fostering a sustainability mindset at the school level by using green nudges to encourage environmentally conscious water conservation behaviors. The methodological application was a field experiment with a post-intervention quantitative analysis, strategically placed visual prompts (stickers) were used to encourage water-saving behavior among students, teachers, and staff. The results show a significant reduction in water wastage, highlighting the impact of green nudges. Regression analysis indicates that responsiveness to green nudges and knowledge of environmental issues are significant predictors of water conservation behavior. The study concludes that tailored, strategically placed nudges can effectively promote sustainable behaviors in schools. These findings offer valuable insights for educators, policymakers, and sustainability practitioners, emphasizing the importance of integrating sustainability education to maintain long-term behavioral changes. |
| Keywords: | Behavioral choices, Green-nudges, Sustainability mindset, Water conservation. |
| JEL: | D71 Q01 Q57 Z0 |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122767 |