Data for: Capital bias in the Nordic revenue cap regulation: Averch-Johnson critique revisited

Published: 31 March 2020| Version 1 | DOI: 10.17632/hvjtt2st39.1
Timo Kuosmanen,
Tuan Nguyen


Numerical simulations Solving the constrained profit maximization problem of the regulated firm and the corresponding unconstrained problems of the unregulated firm and the competitive firm are computationally trivial for modern mathematical programming solvers. To facilitate broader applicability of the numerical simulations reported in this paper among practitioners (including management consultants and regulators), we have set up an Excel spread sheet where the profit maximizing problems of the monopoly solved using the standard Excel solver tool. An Excel file containing the baseline scenario and the results of most alternative scenarios is attached as a supplementary file to this paper.



Computer Simulation