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dc.contributor.authorWalmsley, Michael Aen_NZ
dc.date.available2011-04-07T03:15:11Z
dc.date.copyright2005en_NZ
dc.identifier.citationWalmsley, M. A. (2005). Using NPV = 0 rule to infer excess profits in a competitive enviroment (Thesis). Retrieved from http://hdl.handle.net/10523/1396en
dc.identifier.urihttp://hdl.handle.net/10523/1396
dc.description.abstractIn this study we evaluate the methodology used by the New Zealand Commerce Commission in determining the socially 'optimal' price level for regulated industries. Focusing on the fact that the current methodology ignores the existence of costly market frictions and valuable real options, we identify possible weaknesses in the price setting process, which could result in regulated companies receiving an inadequate return on the cost of their invested capital. To test if these weaknesses invalidate the methodology we measured the effect of competition on the value of real options, with inconclusive results. However, evidence is found which indicates that some competitive industries may still have valuable real options or experience costly market frictions.en_NZ
dc.subjectNew Zealand Commerce Commissionen_NZ
dc.subjectoptimalen_NZ
dc.subjectprice levelen_NZ
dc.subjectregulated industriesen_NZ
dc.subjectreturnen_NZ
dc.subjectinvested capitalen_NZ
dc.subjectreal optionsen_NZ
dc.subjectMethodologyen_NZ
dc.subject.lcshHF Commerceen_NZ
dc.subject.lcshHF5601 Accountingen_NZ
dc.subject.lcshHG Financeen_NZ
dc.titleUsing NPV = 0 rule to infer excess profits in a competitive enviromenten_NZ
dc.typeThesisen_NZ
dc.description.versionUnpublisheden_NZ
otago.bitstream.pages38en_NZ
otago.date.accession2006-08-26en_NZ
otago.schoolFinanceen_NZ
thesis.degree.disciplineFinanceen_NZ
thesis.degree.grantorUniversity of Otagoen_NZ
thesis.degree.levelMasters Thesesen_NZ
otago.interloanyesen_NZ
otago.openaccessAbstract Only
dc.identifier.eprints332en_NZ
otago.school.eprintsFinance & Quantitative Analysisen_NZ
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