please correct answer with small explanation

Regulators in developing countries claim that inappropriate information about the firm's costs and revenues is a problem under price cap regulation but not under cost of service regulation. Select one: O a. The regulators' observation is consistent with the theoretical prediction that private information is more valuable under cost of service regulation O b. The regulators' observation is the result of price cap being a high-powered incentive scheme O c. The regulators' observation is different from the theoretical predictions