Relative and individual regulation: An investigation of investment incentives under a cost-plus approach

Preprint OPEN
Ebel, Nikos; Lefouili, Yassine;
(2008)
  • Subject: Yardstick Competition, Cost Reduction, Cost-Plus Regulation
    • jel: jel:L90 | jel:L50 | jel:D49
    mesheuropmc: health care economics and organizations

We analyze the effects of a modified Yardstick competition on firms’ cost-reduction efforts. Departing from the existing literature, we use a relative cost-plus approach: firms are regulated on the basis of other firms’ performances, but they are granted a mark-up and n... View more
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