Studies In Public Regulation


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Richard L. Schmalensee is John C. Head III Dean and Professor of Management and Economics at the MIT Sloan School of Management. He is co-editor of Management: Inventing and Delivering Its Future (MIT Press, 2003).


This is a stimulating collection.... Each [paper] makes an original contribution to some aspect of the economics of regulation. There is a very useful overview of the literature. The book also includes: the development of a methodology for integrating income distribution concerns into regulatory policy; an analysis of the case for solvency regulation of the insurance industry; an argument for barriers to exit rather than rate regulation as the major cause of the poor profitability and investment performance of U.S. railroads; an analysis of the political economy of water pollution controls; an analysis of rate of return regulation in the context of a multiproduct firm; and a contribution to the theory of sustainability and cross subsidization in regulated markets. These papers are all set in the wider context of the literature on regulation and the impact of that literature on public policy.

—Journal of Policy Analysis and Management

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