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Credible Threats as an Instrument of Regulation for Network Industries

In: Digital Economic Dynamics

Author

Listed:
  • Justus Haucap

    (Ruhr-University of Bochum)

  • Ulrich Heimeshoff

    (Ruhr-University of Bochum)

  • André Uhde

    (Ruhr-University of Bochum)

Abstract

One of the major success stories for microeconomists involves the fundament forms that have taken place in nehvork industries within the last 20 years. In many countries, the institutional framework under which utility and other network industries operate has changed significantly, involving aspects of privatisation, liberalisation eralisation and de- and re-regulation. However, even though the institul framework has changed for the better in many countries so that efficiency has improved in most liberalised network industries, there is a still a vivid and ongoing debate about the proper balance between regulation and competition policy, or more generally, about the efficiency of various regulatory frameworks. Today, the focus of this discussion is on the questions of (a) how over-regulation can be avoided and (b) how and under what circumstances intrusive heavy-handed sector specific regulation can be substituted by reliance on competition law or at least a more light-handed approach.

Suggested Citation

  • Justus Haucap & Ulrich Heimeshoff & André Uhde, 2007. "Credible Threats as an Instrument of Regulation for Network Industries," Springer Books, in: Paul J. J. Welfens & Mathias Weske (ed.), Digital Economic Dynamics, pages 171-202, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-36030-8_9
    DOI: 10.1007/978-3-540-36030-8_9
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    Cited by:

    1. Ingo Vogelsang, 2012. "Incentive Regulation, Investments and Technological Change," Chapters, in: Gerald R. Faulhaber & Gary Madden & Jeffrey Petchey (ed.), Regulation and the Performance of Communication and Information Networks, chapter 4, Edward Elgar Publishing.

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