caa a22 4500 469075791 CHVBK 20180323132934.0 cr unu---uuuuu 170328e19920301xx s 000 0 eng 10.1007/BF00134218 doi (NATIONALLICENCE)springer-10.1007/BF00134218 Economic depreciation and the regulated firm under competition and technological change [Elektronische Daten] [Michael Crew, Paul Kleindorfer] Capital recovery is increasingly important to utilities, especially telephone companies, when technological change and competitive entry are occurring. In the absence of efficient capital recovery policies companies are going to see their equity eroded. In addition to losses by the companies there are likely to be losses to ratepayers in the form of reductions in service quality and higher rates in the future. To address the above problem this paper first reviews economic depreciation and capital recovery in the simple case of a regulated single product monopoly facing competitive entry. It employs the concept of economic depreciation to show how capital recovery policies will be front-loaded. It also develops the concept of the window of opportunity for capital recovery. There is a limited time for regulators to take remedial action, and if timely action is not taken there is no alternative but for the company to fail to recover some of its capital. These results are shown under both traditional rate of return and price caps. Kluwer Academic Publishers, 1992 Crew Michael Rutgers University Graduate School of Management, 180 University Avenue, 07102, Newark, NJ aut Kleindorfer Paul University of Pennsylvania The Wharton School, 19104, Philadelphia, PA aut Journal of Regulatory Economics Kluwer Academic Publishers 4/1(1992-03-01), 51-61 0922-680X 4:1<51 1992 4 11149 https://doi.org/10.1007/BF00134218 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/BF00134218 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Crew Michael Rutgers University Graduate School of Management, 180 University Avenue, 07102, Newark, NJ aut NATIONALLICENCE 700 1- Kleindorfer Paul University of Pennsylvania The Wharton School, 19104, Philadelphia, PA aut NATIONALLICENCE 773 0- Journal of Regulatory Economics Kluwer Academic Publishers 4/1(1992-03-01), 51-61 0922-680X 4:1<51 1992 4 11149 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer