Table 1.

Base line parameter values

Parameter	Symbol	Value
Net profit	P	1
Net profit adjustment	$\delta$	0.8
Investment steps	$q_{B1}$ and $q_{B2}$	0.15
Regulated fraction	$\overline{q_B}$	0.3
Withholding time (years)	$\theta$	0.5
Investment cost	C	30
Discount rate	r	0.02