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On optimal regulation of price and R&D with asymmetric information
Authors:Jean-Christophe Poudou  Lionel Thomas
Institution:1. Laser, University of Montpellier I, Montpellier, France
2. Département GEA, CRESE, Université de Franche Comté, IUT de Besan?on, 30 Avenue de l’Observatoire, 25030, Besan?on Cedex, France
Abstract:This paper deals with the optimal regulation for cost-reducing R&D and pricing in natural monopoly that is privately informed on its efficiency. We extend the work of Cantner and Kuhn (Rev Econ Des 4:191–204, 1999) and then we are able to analyse the entire effects of the interplay between agent’s efficiency and investment in R&D particularly considering the substitutability case.
Keywords:
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