Output-based incentive regulation in electricity distribution: evidence from Italy

Incentive regulation in electricity distribution is expected to enlarge its scope, from an input-oriented instrument to one that includes additional, output-based incentives. This creates a potential conflict with more traditional concerns for productive efficiency. In the case of Italy, together with input-oriented instruments, output-based incentives have been applied to indicators of quality for over a decade. Using micro-data from the largest Italian distribution company, we conduct an assessment of the effects of this regulatory framework. The aim of this word is threefold. First, we measure performance in terms of cost-efficiency and find that similar cost-reducing efforts were exercised in all distribution units. Second, we measure performance with respect to the overall regulatory framework. Using quality-related rewards and penalties, we find that more cost-efficient areas were also more successful in earning rewards/avoiding penalties: favorable external conditions have similar, positive effects on both cost and quality performance. Using the cost of the energy not supplied, we find no evidence of a conflict between cost efficiency and social cost efficiency. Results indicate, however, that is preferable to use social costs when measuring a single unit's performance. From these results we derive specific policy indication

The problem of “white noise”: examining current prevention approaches to online fraud

Purpose - The purpose of this article is to examine the current prevention messages that exist surrounding the prevention of online fraud. In particular, it focuses on the amount and level of detail that is promoted for each type of potential fraudulent approach. Design/methodology/approach - Multiple data sources are used to establish the main premise of this paper. This includes the publication entitled Little Black Book of Scams, qualitative data from victims who have experienced online fraud, and materials collected through a police investigation into online fraud. Findings - Results of this analysis indicate that current prevention messages are characterised by a large degree of detail about the various ways that (online) fraud can be perpetrated. This is argued to be ineffective, based on the experiences of victims who were unable to apply their previous knowledge about fraud to their experiences. Additionally, the categorisation of fraudulent approaches is highlighted as unimportant to offenders, who are focused on obtaining money by whatever means (or approach) possible. Practical implications - This article provides the impetus to evaluate the effectiveness of current prevention messages. It points to a simplification of existing prevention messages to focus more importantly on the transfer of money and the protection of personal information. Originality/value - This article argues that current prevention messages are characterised by too much “white noise”, in that they focus on an overwhelming amount of detail. This is argued to obscure what should be a straightforward message which could have a greater impact than current messages

Contemporary developments in Australian trade practices and their implications for industrial relations

Originally designed as a legal framework intended to govern the nature of business-to-business and business-to-consumer dealings, Australia’s principal competition and consumer law, the Trade Practices Act 1974 (Cth), has evolved over the last 30 years to the point where it also has a significant impact on a number of industrial relations issues. As competition law continues to evolve, it creates flow-on effects that are also felt within the workplace. This article provides an overview of some key recent developments in competition regulation that have had an impact on industrial relations practices. These include the increased use of the Trade Practices Act as a tool in employment contract disputes; the role competition policy is having on redefining the nature of work in the professions; the impact of secondary boycotts and collective bargaining on the work of trade unions; and the treatment of the self-employed individual

Section 46: where we have been and where we are going: a review of the recent debate

Two recent reviews of Part IV of the Trade Practices Act (Commonwealth) (1974) have looked specifically at the operation of Section 46 of this Act and have come to very different conclusions concerning its efficacy. The Dawson review (2003) argued that no change to S 46 was required as the courts were providing sufficient guidance in the application of the legislation in this respect. The Senate Committee review (2004) came to different conclusions arguing that the Act needed clarification in regard to certain sections. These reports highlight the controversy that has surrounded this section of the Trade Practices Act for the past thirty years. The aim of this paper is to consider these reviews and evaluate the extent to which the High Court has been able to provide guidance in the application of legislation that prohibits the misuse of market power.<br /