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The political economy of international regulatory convergence in public utilities

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  • Bonardi, Jean-Philippe
  • Urbiztondo, Santiago
  • Quelin, Bertrand

Abstract

To what extent should public utilities regulation be expected to converge across countries? When it occurs, will regulatory convergence lead to positive outcomes for utility sectors? This paper attempts to provide new answers to these questions. Building on the core proposition of the New Institutional Economics (NIE) that similar regulations generate different outcomes depending on their fit with the underlying domestic institutions, we develop a simple theoretical model and explore its implications by examining the diffusion of local loop unbundling (LLU) regulations in the telecommunications sector. We find support for the ideas (1) that once institutional factors are taken into account, one should expect some convergence in public utility regulation but with still a significant degree of local experimentation, and (2) this process will lead to very different results regarding the impact of regulation.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 14435.

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Date of creation: 2008
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Handle: RePEc:pra:mprapa:14435

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Keywords: Regulatory convergence; lobbying; utilities;

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  1. Levy, Brian & Spiller, Pablo T, 1994. "The Institutional Foundations of Regulatory Commitment: A Comparative Analysis of Telecommunications Regulation," Journal of Law, Economics and Organization, Oxford University Press, vol. 10(2), pages 201-46, October.
  2. Tarun Khanna & Joe Kogan & Krishna Palepu, 2006. "Globalization and Similarities in Corporate Governance: A Cross-Country Analysis," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 69-90, February.
  3. Wallsten, Scott, 2006. "Broadband and Unbundling Regulations in OECD Countries," Working paper 314, Regulation2point0.
  4. Mukand, Sharun & Rodrik, Dani, 2002. "In Search of the Holy Grail: Policy Convergence, Experimentation and Economic Performance," Working Paper Series rwp02-027, Harvard University, John F. Kennedy School of Government.
  5. Teske, Paul E, 1991. " Rent-Seeking in the Deregulatory Environment: State Telecommunications," Public Choice, Springer, vol. 68(1-3), pages 235-43, January.
  6. Eising, Rainer, 2002. "Policy Learning in Embedded Negotiations: Explaining EU Electricity Liberalization," International Organization, Cambridge University Press, vol. 56(01), pages 85-120, December.
  7. Phedon Nicolaides, 2004. "The Political Economy of Multi-tiered Regulation in Europe," Journal of Common Market Studies, Wiley Blackwell, vol. 42(3), pages 599-618, 09.
  8. Frieden, Jeffry A., 1991. "Invested interests: the politics of national economic policies in a world of global finance," International Organization, Cambridge University Press, vol. 45(04), pages 425-451, September.
  9. Oecd, 2001. "The Development of Broadband Access in the OECD Countries," OECD Digital Economy Papers 56, OECD Publishing.
  10. Mueller,Dennis C., 2003. "Public Choice III," Cambridge Books, Cambridge University Press, number 9780521894753, April.
  11. Bonardi, Jean-Philippe & Holburn, Guy & Vanden Bergh, Rick, 2006. "Nonmarket performance: Evidence from U.S. electric utilities," MPRA Paper 14437, University Library of Munich, Germany.
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