Economic Theories of (De-) Regulation: Lessons for the Power Industry

1989 ◽  
Vol 7 (4) ◽  
pp. 238-250
Author(s):  
Franz Wirl
Keyword(s):  
United States ◽  
The United States ◽  
Power Industry ◽  
Public Utility ◽  
Public Ownership ◽  
Efficient Organization ◽  
Public Firms ◽  
Economic Theories ◽  
Public Regulation

The power industry is traditionally organized as a public utility. While the United States relies on investor owned utilities combined with public regulation. Europe and many other countries use public ownership as a means to control and regulate this important industry. This paper reviews economic theories which justify and/or explain public ownership, or more generally the regulation of (private or public) firms. The aim is to use recent (economic) approaches and criteria of deregulation in order to arrive at a proposal of a — presumably more efficient — organization of the power industry.

Pricing Initial Audit Engagements: A Test of Competing Theories

1999 ◽  
Vol 74 (2) ◽  
pp. 201-216 ◽  
Author(s):  
Allen T. Craswell ◽  
Jere R. Francis
Keyword(s):  
United States ◽  
Product Quality ◽  
Audit Fees ◽  
The United States ◽  
Public Disclosure ◽  
Audit Pricing ◽  
Experience Goods ◽  
Economic Theories ◽  
Time Period

Two competing theories of initial engagement audit pricing are examined empirically. DeAngelo's (1981a) model predicts initial engagement discounts in all settings, while Dye's (1991) model specifically predicts discounting will not occur in settings where audit fees are publicly disclosed. Unlike the United States and most countries, audit fees are publicly disclosed in Australia. Our study examines initial engagement pricing in Australia during a time period when comparable U.S. studies report discounts of 25 percent (Ettredge and Greenberg 1990; Simon and Francis 1988). The Australian evidence finds initial engagement discounting only for upgrades from non-Big 8 to Big 8 auditors. Discounting for upgrades to Big 8 auditors is consistent with economic theories of discount pricing by sellers of higher-priced, higher-quality experience goods as an inducement to purchase when uncertainty about product quality is resolved through buying (experiencing) the goods. The evidence in our study is generally consistent with Dye's (1991) conclusion that public disclosure of audit fees precludes initial engagement discounting and the potential independence problems arising from such discounting.

Governance models of public utility commissions in the United States

2019 ◽  
Vol 20 (3) ◽  
pp. 229-239 ◽  
Author(s):  
Douglas J. Howe
Keyword(s):  
United States ◽  
Political Action ◽  
State Level ◽  
The United States ◽  
State Legislature ◽  
The State ◽  
Public Utility ◽  
Political Action Committees ◽  
Special Interest Groups ◽  
Governance Model

Regulation of utilities at the state level in the United States is undertaken by a commission on which anywhere from three to seven commissioners sit and must vote on virtually all significant utility actions, including rate requests, resource plans, acquisitions and mergers, and financing mechanisms. Public utility commissions (PUCs) are, in a very real sense, courts with adjudicatory responsibility over the area of state utility laws. In hearing a utility case, they must follow the state’s statutes and court rules. The commissioners function as judges in this court of public utility law. In a majority of states, commissioners are appointed by the state’s governor with the advice and consent of the state legislature. In a significant minority of states, commissioners are elected by popular vote. However, recent changes in US election law have made it easier for corporations and special interest groups, called political action committees, to influence elections through donations targeting direct voter outreach on behalf of specific candidates. This chapter examines what the entry of political spending in PUC elections means, and whether elected commissioners can adjudicate in the public interest, or will adjudicate for special interests. The chapter concludes that while both the appointment and election governance model can produce both “good” and “bad” commissioners, it is the elected commission that is most at risk of selecting commissioners that will not be truly independent and objective arbiters of the law.

Perceived TMT transformational leadership and a service recovery culture: the moderating role of gender diversity

2020 ◽  
Vol 41 (8) ◽  
pp. 1171-1186
Author(s):  
Jeremy Galbreath ◽  
Douglas Hoffman ◽  
Gabriel Gonzalez ◽  
Mohammed Quaddus
Keyword(s):  
United States ◽  
Transformational Leadership ◽  
Leadership Styles ◽  
Service Recovery ◽  
Gender Diversity ◽  
The United States ◽  
Content Type ◽  
Public Firms ◽  
Recovery Culture ◽  
The Relationship

PurposeThis is an exploratory study with the purpose of empirically testing and advancing knowledge on the relationship between top management team (TMT) leadership styles and a service recovery culture. A further test explores a contingency perspective, examining if gender diversity on the TMT shapes this relationship.Design/methodology/approachWe examine the perceived TMT transformational leadership style, as well as the moderating effect of TMT gender diversity. Relying on both survey and archival data, our hypotheses are tested with a sample of 234 public firms based in the United States. Moderated hierarchical regression analysis is used as the statistical approach.FindingsResults suggest that perceived TMT transformational leadership is positively associated with a service recovery culture. When accounting for TMT gender diversity, the relationship between perceived TMT transformational leadership and a service recovery culture is positively moderated.Research limitations/implicationsThe study represents a sample of for-profit public firms operating in the United States and should not be taken as a general population sample. The findings could vary relative to other countries, private companies and non-profit organizations.Originality/valueThis is the first known study to explore the relationship between TMT leadership styles, TMT gender diversity and a service recovery culture. The study extends findings with the respect to the impact of TMT leadership and gender diversity on organizational development, as well as offers new insights into the antecedents of a service recovery culture.

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