This article reexamines the administered contracts approach to regulation in light of recent empirical research that establishes the importance of transaction-costs in the organizational choice and design decisions. After reviewing the fundamentals of transaction cost reasoning and the franchise bidding-versus-regulation debate, the study surveys the empirical literature on franchise bidding, contracting, and vertical integration. The implications of transaction-cost theories for current policies toward pubic utility regulation and deregulation are also addressed.
|Original language||English (US)|
|Number of pages||35|
|Journal||Journal of Regulatory Economics|
|State||Published - 1996|
All Science Journal Classification (ASJC) codes
- Economics and Econometrics