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Regulation of Europe's network industries: the perspective of the new economic theory of federalism

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  • Bickenbach, Frank

Abstract

The paper starts with a description of major reforms of EU policy in the network industries. Based on the normative economics of regulation, it then points out generic information and transaction cost problems of regulatory policy making. An appropriate allocation of regulatory competencies may help mitigate these problems. Focusing on the ‘federal’ allocation of competencies it is argued that traditional economic theories of federalism should be complemented by contract-theoretic and transaction-cost-political approaches. There has been some progress in recent years in developing such a ‘new economic theory of federalism’. Basic ideas and some insights of this theory are discussed with regard to the appropriate ‘federal’ allocation of competencies for the regulation of the European network industries.

Suggested Citation

  • Bickenbach, Frank, 2000. "Regulation of Europe's network industries: the perspective of the new economic theory of federalism," Kiel Working Papers 977, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:977
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    Cited by:

    1. Kumkar, Lars, 2002. "The European Electricity Market: Centralization of Regulation or Competition between Regulatory Approaches?," Kiel Discussion Papers 387, Kiel Institute for the World Economy (IfW Kiel).
    2. Wolfgang Kerber & Julia Wendel, 2014. "Regulation of Network Sectors in the EU: A Federalist Perspective," MAGKS Papers on Economics 201422, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    3. Hartenberger, Ute, 2007. "Auf dem Weg zum transnationalen Regulierungsregime? Eine Analyse am Beispiel der Regulierung des Telekommunikationsmarktes," TranState Working Papers 52, University of Bremen, Collaborative Research Center 597: Transformations of the State.
    4. Kumkar, Lars, 2000. "Zur institutionellen Ausgestaltung der Strommarktregulierung: Brauchen wir eine eigenständige Regulierungsbehörde für den Stromtransport?," Kiel Discussion Papers 371, Kiel Institute for the World Economy (IfW Kiel).

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    More about this item

    Keywords

    regulation; asymmetric information; incomplete contracts; economic models of federalism; network industries;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • D7 - Microeconomics - - Analysis of Collective Decision-Making

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