IDEAS home Printed from https://ideas.repec.org/a/emc/ecomex/v8y1999i1p5-43.html
   My bibliography  Save this article

Optimal Price Regulation for Natural and Legal Monopolies

Author

Listed:
  • Ingo Vogelsang

    (Boston University. Boston, MA. USA.)

Abstract

Optimal price regulation for natural and legal monopolies is an impossible task. The still difficult .task of good price regulation can be systematized by considering separately price level and price structure of the regulated firm. Various methods of price level and price structure regulation are evaluated and then considered for the regulation of electricity transmission, both in the context of an independent transmission company and of vertical integration between transmission and most of the generation capacity. The regulatory approach suggested uses price caps defined on two-part tariffs. This way, flexibility for short-term capacity utilization can be combined with incentives for investments in new transmission capacity.

Suggested Citation

  • Ingo Vogelsang, 1999. "Optimal Price Regulation for Natural and Legal Monopolies," Economía Mexicana NUEVA ÉPOCA, , vol. 0(1), pages 5-43, January-J.
  • Handle: RePEc:emc:ecomex:v:8:y:1999:i:1:p:5-43
    as

    Download full text from publisher

    File URL: http://www.economiamexicana.cide.edu/num_anteriores/VIII-1/01_VOGELSANG_5-43.pdf
    Download Restriction: no

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:emc:ecomex:v:8:y:1999:i:1:p:5-43. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ricardo Tiscareño). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.