caa a22 4500 46907597X CHVBK 20180323132935.0 cr unu---uuuuu 170328e19920601xx s 000 0 eng 10.1007/BF00157164 doi (NATIONALLICENCE)springer-10.1007/BF00157164 Blackmon Jr. B. Economic and Policy Consulting, 2181/2 West Fourth Avenue, 98501, Olympia, Washington aut The Incremental Surplus Subsidy and rate-of-return regulation [Elektronische Daten] [B. Blackmon Jr.] Sappington and Sibley (1988) propose an alternative regulatory mechanism, the Incremental Surplus Subsidy (ISS), that would induce the regulated firm to set price at marginal cost and eliminate all waste. The ISS would give the firm a subsidy equal to the one-period gain in consumer surplus resulting from its pricing decision. This article shows that the ISS does not induce greater production efficiency than traditional rate-of-return (ROR) regulation. The author proposes a "super-ISS” mechanism that would give the firm a subsidy greater than the gain in consumer surplus resulting from its pricing decisions. This super-ISS mechanism is shown to result in greater benefits than either ISS or ROR regulation. Kluwer Academic Publishers, 1992 Journal of Regulatory Economics Kluwer Academic Publishers 4/2(1992-06-01), 187-196 0922-680X 4:2<187 1992 4 11149 https://doi.org/10.1007/BF00157164 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/BF00157164 text/html Onlinezugriff via DOI NATIONALLICENCE 100 1- Blackmon Jr B. Economic and Policy Consulting, 2181/2 West Fourth Avenue, 98501, Olympia, Washington aut NATIONALLICENCE 773 0- Journal of Regulatory Economics Kluwer Academic Publishers 4/2(1992-06-01), 187-196 0922-680X 4:2<187 1992 4 11149 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer