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The Network Industry, Monopoly Regulation, and Social Optimum

Author

Listed:
  • Uriel Spiegel
  • Uri Ben-Zion
  • Tchai Tavor
  • Joseph Templeman

Abstract

This paper examines pricing policy, quality levels, consumer surplus and social welfare for the monopoly and non-monopoly case. It is shown that given certain realistic assumptions, the network industry under unregulated monopoly would yield more social welfare than in the case of several producers in the industry, and would therefore be socially preferred.

Suggested Citation

  • Uriel Spiegel & Uri Ben-Zion & Tchai Tavor & Joseph Templeman, 2008. "The Network Industry, Monopoly Regulation, and Social Optimum," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 15(3), pages 323-337.
  • Handle: RePEc:taf:ijecbs:v:15:y:2008:i:3:p:323-337
    DOI: 10.1080/13571510802465104
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