Regulating Flat-rate Liabilities for Switched-off Buyers' Defaults in the Power Supply Market. Collective Interests, Free-riding, and Efficiency of the Justice System.
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Abstract
Switched-off buyers' defaults are a usual feature of the power supply market. This free-riding problem may increase transaction costs. The relevant regulatory authority copes with it through the imposition of a flat-rate joint liability upon the new seller, the buyer and the distributor. This rule may foster efficiency, ultimately reducing the courts' workload. Hence, this regulation may be justified as a means to protect a collective interest.
Keywords
- Collective Interests
- Regulatory Law
- Power Supply Market
- Flat-rate Liability
