Natural Monopoly And Its Regulation

Author : Richard A. Posner
Publisher : Cato Institute
Page : 131 pages
File Size : 42,5 Mb
Release : 1999-04-01
Category : Political Science
ISBN : 9781933995823

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Natural Monopoly and Its Regulation by Richard A. Posner Pdf

Natural monopolies exist in those markets in which demand can be satisfied at lowest cost by the output of only one rather than several competing firms. Under such conditions, conventional wisdom suggests that government regulation must substitute for competition to discipline the behavior of firms. Thirty years ago a young professor named Richard Posner asked the provocative question of whether the existence of natural monopoly provides adequate justification for government intervention. His even more provocative answer was no. The evils of natural monopoly are exaggerated, the effectiveness of regulation in controlling them is highly questionable, and regulation costs a great deal. "The resources and energies of government should be directed to problems we know are substantial, that we think are traceable to government action, and that cannot be left to the private sector to work out. There are plenty of those problems, and it is doubtful that natural monopoly is among them." Thirty years after its initial publication, read the original insights of Richard Posner about the regulation of natural monopoly as well as a new preface in which Posner reflects on the deregulation of industries that has occurred since 1969 and the possibilities for more deregulation in the future."

Author : Sanford V. Berg,John Tschirhart
Publisher : Cambridge University Press
Page : 580 pages
File Size : 55,7 Mb
Release : 1989-01-27
Category : Business & Economics
ISBN : 052133893X

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Natural Monopoly Regulation by Sanford V. Berg,John Tschirhart Pdf

Considered the cutting edge of microeconomic theory in the 1970s, natural monopoly research remains an active and fertile field. Policy makers and regulators have begun to implement entry and pricing policies that are based on theoretical and empirical analyses. This book develops a comprehensive framework for analyzing natural monopoly. The authors first present a historical overview of regulatory economics, followed by analyses of optimal pricing and investment for single- and multiproduct natural monopolies. Topics covered include cost and demand structures, efficiency impacts of linear and multipart pricing, peak-load pricing, capacity determination, and the sustainability of natural monopolies. After a survey and analysis of natural monopoly regulation in practice, the links between technological change and regulation are identified. The book concludes with a discussion of the alternatives to traditional regulation, including public ownership, franchise schemes, quality regulation, and new incentive systems. Throughout the book, issues from the telecommunications and energy industries are used to illustrate key points. Its integrated framework will make it useful to academic economists, regulatory analysts, business researchers, and advanced students of public utility economics.

Author : Kenneth Train
Publisher : Mit Press
Page : 338 pages
File Size : 52,8 Mb
Release : 1991
Category : Business & Economics
ISBN : 0262200848

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Optimal Regulation by Kenneth Train Pdf

Optimal Regulation addresses the central issue of regulatory economics - how toregulate firms in a way that induces them to produce and price "optimally." It synthesizes the majorfindings of an extensive theoretical literature on what constitutes optimality in various situationsand which regulatory mechanisms can be used to achieve it. It is the first text to provide aunified, modern, and nontechnical treatment of the field.The book includes models for regulatingoptimal output, tariffs, and surplus subsidy schemes, and presents all of the material graphically,with clear explanations of often highly technical topics.Kenneth E. Train is Associate AdjunctProfessor in the Department of Economics and Graduate School of Public Policy at the University ofCalifornia, Berkeley. He is also Principal of the firm Cambridge Systematics.Topics include: Thecost structure of natural monopoly (economies of scale and scope). Characterization of firstandsecond-best optimality. Surplus subsidy schemes for attaining first-best optimality. Ramsey pricesand the Vogelsang-Finsinger mechanism for attaining them. Time-ofuse (TOU) prices and Riordan'smechanisms for attaining the optimal TOU prices' Multipart and self-selecting tariffs, and Sibley'smethod for using self-selecting tariffs to achieve optimality. The Averch-Johnson model of howrate-of-return regulation induces inefficiencies. Analysis of regulation based on the firm's returnon Output, costs, or sales. Price-cap regulation. Regulatory treatment of uncertainty and its impacton the firm's behavior. Methods of attaining optimality without direct regulation (contestability,auctioning the monopoly franchise.)

Author : Daniel H. Cole,Peter Grossman
Publisher : Routledge
Page : 243 pages
File Size : 51,5 Mb
Release : 2003-07-17
Category : Business & Economics
ISBN : 9781135697013

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The End of a Natural Monopoly by Daniel H. Cole,Peter Grossman Pdf

This book addresses the fundamental issues underlying the debate over electric power regulation and deregulation. After decades of the presumption that the electric power industry was a natural monopoly, recent times have seen a trend of deregulation followed by panicked re-regulation. This important book critically analyses this controversial area from a legal and economic perspective.

Author : Francesco Ducci
Publisher : Cambridge University Press
Page : 203 pages
File Size : 40,6 Mb
Release : 2020-07-23
Category : Business & Economics
ISBN : 9781108491143

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Natural Monopolies in Digital Platform Markets by Francesco Ducci Pdf

Through three case studies, this book investigates whether digital industries are naturally monopolistic and evaluates policy approaches to market power.

Author : John R. Baldwin
Publisher : McGill-Queen's Press - MQUP
Page : 163 pages
File Size : 44,6 Mb
Release : 2022-05-31
Category : Business & Economics
ISBN : 9780228012450

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Regulatory Failure and Renewal by John R. Baldwin Pdf

Regulatory Failure and Renewal develops a framework to understand the choice of regulatory instrument used in Canada for natural monopolies such as telephone companies, water utilities, streetcars, hydroelectricity, and railways from the 1880s to the 1930s. Using the transaction-cost literature pioneered by Oliver Williamson, John Baldwin examines the nature of contractual failure in Canada in natural monopoly cases, asking why initial forms of contracts between the state and private enterprise failed and why this failure so often resulted in the use of public enterprise. Baldwin outlines early attempts to deal with natural monopolies – from the use of a franchise contract to regulatory tribunals and finally to public enterprise – and compares Canadian experiences to US approaches, which turned more frequently to regulatory tribunals. This difference is due to Canada’s more limited constraints on the state’s ability to exercise coercive power, which sometimes leads to contractual failure that results in replacing franchise and regulatory frameworks with public enterprise. Regulatory Failure and Renewal demonstrates that public enterprise arose not so much as part of a purposive choice but because of reoccurring failures in the contractual process between the Canadian state and private enterprise.

Author : William W. Sharkey
Publisher : Cambridge University Press
Page : 240 pages
File Size : 43,7 Mb
Release : 1982-11-30
Category : Business & Economics
ISBN : 0521243947

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The Theory of Natural Monopoly by William W. Sharkey Pdf

The theory of natural monopoly has been substantially transformed in previous years. Ina clear and straightforward style, Dr. Sharkey gives an integrated presentation of the modern approach to this subject. Although the book is mainly conceptual in nature, the final chapter on natural monopoly in the telecommunications industry shows the practical applications of the theory. After an historical survey of natural monopoly, there follows a chapter stating and explaining the main results as well as giving a preliminary overview of the rest of the book, where concepts such as the subadditivity of costs, optimal pricing, sustainability, and destructive competition are presented. The essence of the subject is presented in a manner accessible to the general reader, though the book also provides a synthesis of the subject suitable for advanced students.

Author : José A. Gómez-Ibáñez
Publisher : Harvard University Press
Page : 456 pages
File Size : 46,9 Mb
Release : 2006-09-01
Category : Business & Economics
ISBN : 0674037804

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Regulating Infrastructure by José A. Gómez-Ibáñez Pdf

In the 1980s and '90s many countries turned to the private sector to provide infrastructure and utilities, such as gas, telephones, and highways--with the idea that market-based incentives would control costs and improve the quality of essential services. But subsequent debacles including the collapse of California's wholesale electricity market and the bankruptcy of Britain's largest railroad company have raised troubling questions about privatization. This book addresses one of the most vexing of these: how can government fairly and effectively regulate "natural monopolies"--those infrastructure and utility services whose technologies make competition impractical? Rather than sticking to economics, José Gómez-Ibáñez draws on history, politics, and a wealth of examples to provide a road map for various approaches to regulation. He makes a strong case for favoring market-oriented and contractual approaches--including private contracts between infrastructure providers and customers as well as concession contracts with the government acting as an intermediary--over those that grant government regulators substantial discretion. Contracts can provide stronger protection for infrastructure customers and suppliers--and greater opportunities to tailor services to their mutual advantage. In some cases, however, the requirements of the firms and their customers are too unpredictable for contracts to work, and alternative schemes may be needed.

Author : Richard Schmalensee
Publisher : Free Press
Page : 200 pages
File Size : 46,5 Mb
Release : 1979
Category : Business & Economics
ISBN : UOM:39015008532247

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The Control of Natural Monopolies by Richard Schmalensee Pdf

Author : Roger Sherman
Publisher : Cambridge University Press
Page : 332 pages
File Size : 40,8 Mb
Release : 1989-03-31
Category : Business & Economics
ISBN : 0521368626

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The Regulation of Monopoly by Roger Sherman Pdf

Competition may not function well where technology calls for large and complex investments, as in the electrivity industry where public utilities often provide service. This book presents economic welfare foundations for the purpose of evaluating how well, from a social point of view, an enterprise performs when competition is unable to function. Problems with existing institutions are emphasized. Topics treated include welfare measures and their uses in peak-load pricing, second-best pricing, and income distribution. Professor Sherman covers public choice difficulties of government intervention, and describes problems with incentives in statutory monopolies and efforts to overcome them through the study of principal-agent relationships. Contestability and sustainable prices are also discussed, as well as effects of uncertainty and imperfect information.

Author : A. Mitchell Polinsky,Steven Shavell
Publisher : Elsevier
Page : 981 pages
File Size : 41,9 Mb
Release : 2007
Category : Droit
ISBN : 9780444531209

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Handbook of law and economics by A. Mitchell Polinsky,Steven Shavell Pdf

"Law can be viewed as a body of rules and legal sanctions that channel behavior in socially desirable directions - for example, by encouraging individuals to take proper precautions to prevent accidents or by discouraging competitors from colluding to raise prices. The incentives created by the legal system are thus a natural subject of study by economists. Moreover, given the importance of law to the welfare of societies, the economic analysis of law merits prominent treatment as a subdiscipline of economics. This two volume Handbook is intended to foster the study of the legal system by economists. The two volumes form a comprehensive and accessible survey of the current state of the field. Chapters prepared by leading specialists of the area. Summarizes received results as well as new developments."--[Source inconnue].

Author : Michael Waterson
Publisher : Unknown
Page : 164 pages
File Size : 51,9 Mb
Release : 1988
Category : Industrial organization
ISBN : OCLC:1151056583

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Regulation of the Firm and Natural Monopoly by Michael Waterson Pdf

Author : Ralph Bradburd
Publisher : World Bank Publications
Page : 48 pages
File Size : 54,7 Mb
Release : 1992
Category : Government business enterprises
ISBN : 8210379456XXX

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Privatization of Natural Monopoly Public Enterprises by Ralph Bradburd Pdf

Author : Richard B. McKenzie,Dwight R. Lee
Publisher : University of Michigan Press
Page : 334 pages
File Size : 43,5 Mb
Release : 2008-02-04
Category : Business & Economics
ISBN : 0472116150

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In Defense of Monopoly by Richard B. McKenzie,Dwight R. Lee Pdf

A provocative defense of market dominance

Author : Michael A. Crew,Paul R. Kleindorfer
Publisher : Springer
Page : 306 pages
File Size : 48,5 Mb
Release : 1986-06-18
Category : Social Science
ISBN : 9781349072958

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The Economics of Public Utility Regulation by Michael A. Crew,Paul R. Kleindorfer Pdf