Regulatory Governance Costs in Network Industries: Observations in Postal Regulation
The various actors in the regulated industries relate to each other within a broader institutional framework, i.e., by way of formal and informal rules. An important role in the implementation of liberalization processes is given to regulation and thus to regulatory institutions. The rationale for regulation is its positive effect on society by correcting market failures. But regulatory intervention also causes costs which we call "costs of regulatory governance". These costs result from negative consequences caused by regulatory requirements and from the implementation of regulatory instruments. These costs will depend upon the formal and informal rules among the involved actors, upon the allocation of property rights among these actors, as well as upon the various principal-agent or more generally contractual relationships among these actors. We distinguish between direct and indirect costs of regulation: Direct costs occur in relation with the institutional design of the regulatory framework and the behaviour of actors. Indirect costs result from distorted incentives and finally turn out in an inefficient supply of goods and services. Using the example of the Swiss postal market we offer a first outline of a possible application of the framework. In this article we neither intend to quantify regulatory costs nor do we question regulation per se. We rather present a qualitative framework which helps to structure a discussion about regulatory challenges in network industries.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 11 (2010)
Issue (Month): 2 (June)
|Contact details of provider:|| Web page: http://www.crninet.com/|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jaag, Christian, 2007.
"Liberalization of the Swiss Letter Market and the Viability of Universal Service Obligations,"
6121, University Library of Munich, Germany.
- Christian Jaag, 2007. "Liberalization of the Swiss Letter Market and the Viability of Universal Service Obligations," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 143(III), pages 261-282, September.
- Christian Jaag, 2007. "Liberalization of the Swiss Letter Market and the Viability of Universal Service Obligations," Working Papers 0006, Swiss Economics.
- Christian Jaag & Urs Trinkner, 2008.
"Pricing in Competitive Two-Sided Mail Markets,"
in: Competition and Regulation in the Postal and Delivery Sector, chapter 10
- Richard A. Posner, 1974.
"Theories of Economic Regulation,"
NBER Working Papers
0041, National Bureau of Economic Research, Inc.
- Knieps, Günter, 2002. "Does the system of letter conveyance constitute a bottleneck resource?," Discussion Papers 88, University of Freiburg, Institute for Transport Economics and Regional Policy.
- Christian Jaag & Urs Trinkner, 2011.
"A General Framework for Regulation and Liberalization in Network Industries,"
in: International Handbook of Network Industries, chapter 3
- Christian Jaag & Urs Trinkner, 2009. "A General Framework for Regulation and Liberalization in Network Industries," Working Papers 0016, Swiss Economics.
- Mark Armstrong & David E.M. Sappington, 2006.
"Regulation, Competition and Liberalization,"
Journal of Economic Literature,
American Economic Association, vol. 44(2), pages 325-366, June.
- Frank A.G. den Butter & Marc de Graaf & Andr� Nijsen, 2009. "The Transaction Costs Perspective on Costs And Benefits of Government Regulation," Tinbergen Institute Discussion Papers 09-013/3, Tinbergen Institute.
- de Bijl, P.W.J. & van Damme, E.E.C. & Larouche, P., 2006.
"Regulating access to stimulate competition in postal markets?,"
Other publications TiSEM
21b1fca3-5f00-4ffa-849d-3, Tilburg University, School of Economics and Management.
- de Bijl, P.W.J. & van Damme, E.E.C. & Larouche, P., 2005. "Regulating Access to Stimulate Competition in Postal Markets," Discussion Paper 2005-026, Tilburg University, Tilburg Law and Economic Center.
- Steven Tadelis & Oliver E.Williamson, 2012.
"Transaction Cost Economics
[The Handbook of Organizational Economics]," Introductory Chapters, Princeton University Press.
- repec:cup:cbooks:9780521894753 is not listed on IDEAS
- John C. Panzar & Robert D. Willig, 1977. "Free Entry and the Sustainability of Natural Monopoly," Bell Journal of Economics, The RAND Corporation, vol. 8(1), pages 1-22, Spring.
- Knieps, Günter & Weiß, Hans-Jörg, 2008. "Regulatory agencies and regulatory risk," Discussion Papers 118 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
- Williamson, Oliver E, 1999. "Public and Private Bureaucracies: A Transaction Cost Economics Perspective," Journal of Law, Economics and Organization, Oxford University Press, vol. 15(1), pages 306-42, April.
- Dassler, Thoralf, 2006. "Combining theories of regulation - Proposing a framework for analysing regulatory systems worldwide," Utilities Policy, Elsevier, vol. 14(1), pages 31-43, March.
- 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.
- M. Finger & J. Groenewegen & R. KÃ¼nneke, 2005. "The Quest for Coherence Between Institutions and Technologies in Infrastructures," Competition and Regulation in Network Industries, Intersentia, vol. 6(4), pages 227-260, December.
When requesting a correction, please mention this item's handle: RePEc:sen:journl:v:11:i:2:y:2010:p:207-238. 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: (Petra Van den Bempt)
If references are entirely missing, you can add them using this form.