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Hayekian complexity and the role of regulation in electricity markets


  • Fuat Oğuz


Utilities worldwide have followed the natural monopoly model for more than a century. This has started to change in recent decades. Electricity systems have become complex, as interactions between participants become multidimensional. This article examines the knowledge problem in an increasingly complex electricity system. I argue that increasing complexity in the electricity system necessitates reconsideration of the regulatory tariff model for utilities.

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  • Fuat Oğuz, 2020. "Hayekian complexity and the role of regulation in electricity markets," Economic Affairs, Wiley Blackwell, vol. 40(3), pages 406-418, October.
  • Handle: RePEc:bla:ecaffa:v:40:y:2020:i:3:p:406-418
    DOI: 10.1111/ecaf.12429

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    References listed on IDEAS

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    7. John H. Miller & Scott E. Page, 2007. "Complexity in Social Worlds, from Complex Adaptive Systems: An Introduction to Computational Models of Social Life," Introductory Chapters, in: Complex Adaptive Systems: An Introduction to Computational Models of Social Life, Princeton University Press.
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