Competition in electricity distribution
The traditional view of electricity distribution is that it is a natural monopoly. Few authors have explored the question as to whether electricity distributors truly are natural monopolies or not, while observation of the current industrial practice tends to suggest that a "market" for distribution activities does actually exist. This is a paradox for a natural monopoly. Our explanation is that monopoly characteristics well characterise the network infrastructure, but not the network operation service.
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References listed on IDEAS
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- Gunn, Calum & Sharp, Basil, 1999. "Electricity distribution as an unsustainable natural monopoly: a potential outcome of New Zealand's regulatory regime," Energy Economics, Elsevier, vol. 21(4), pages 385-401, August.
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The RAND Corporation, vol. 32(3), pages 387-407, Autumn.
- Patrick Bajari & Steven Tadelis, 1999. "Incentives versus Transaction Costs: A Theory of Procurement Contracts," Working Papers 99029, Stanford University, Department of Economics.
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Cambridge Working Papers in Economics
0112, Faculty of Economics, University of Cambridge.
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- Kenneth E. Train, 1991. "Optimal Regulation: The Economic Theory of Natural Monopoly," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200848, June.
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