Corporate Self-Regulation vs. Ex-Ante Regulation of Network Access: A Model of the German Gas Sector
AbstractThis paper compares the outcomes of corporate self-regulation and traditional ex-ante regulation of network access to monopolistic bottlenecks. In the model of self-regulation, the domestic gas supplier and network owner and the monopsonistic gas customer fix quantities and the network access price, whereas the competitive fringe of foreign gas producers (third party) and the household customers are excluded from the agreement. The results are then compared with the outcome of traditional ex-ante regulation. We find that while industrial self-regulation leads to an exploitation of households, the effect on the foreign producers is unclear.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 436.
Length: 13 p.
Date of creation: 2004
Date of revision:
Ex-ante regulation; Competition policy; Non-discriminatory network access; Bargaining;
Find related papers by JEL classification:
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-08-16 (All new papers)
- NEP-COM-2004-08-16 (Industrial Competition)
- NEP-REG-2004-08-16 (Regulation)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brunekreeft, G., 2002. "Regulatory Threat in Vertically Related Markets; The Case of German Electricity," Cambridge Working Papers in Economics 0228, Faculty of Economics, University of Cambridge.
- Cremer, Helmuth & Gasmi, Farid & Laffont, Jean-Jacques, 2003. "Access to Pipelines in Competitive Gas Markets," Journal of Regulatory Economics, Springer, vol. 24(1), pages 5-33, July.
- Christian Growitsch & Thomas Wein, 2005. "Negotiated Third Party Accessâ€”An Industrial Organisation Perspective," European Journal of Law and Economics, Springer, vol. 20(2), pages 165-183, September.
- Thomas Wein, 2005. "Associations` Agreement and the Interest of the Network Suppliers - The Strategic Use of Structural Features," Working Paper Series in Economics 7, University of Lüneburg, Institute of Economics.
- Thomas Wein & Heike Wetzel, 2007. "The Difficulty to Behave as a (regulated) Natural Monopolist – The Dynamics of Electricity Network Access Charges in Germany 2002 to 2005," Working Paper Series in Economics 62, University of Lüneburg, Institute of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek).
If references are entirely missing, you can add them using this form.