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Natural Monopoly Regulation

Author

Listed:
  • Berg,Sanford V.
  • Tschirhart,John

Abstract

Considered the cutting edge of microeconomic theory in the 1970s, natural monopoly research remains an active and fertile field. Policy makers and regulators have begun to implement entry and pricing policies that are based on theoretical and empirical analyses. This book develops a comprehensive framework for analyzing natural monopoly. The authors first present a historical overview of regulatory economics, followed by analyses of optimal pricing and investment for single- and multiproduct natural monopolies. Topics covered include cost and demand structures, efficiency impacts of linear and multipart pricing, peak-load pricing, capacity determination, and the sustainability of natural monopolies. After a survey and analysis of natural monopoly regulation in practice, the links between technological change and regulation are identified. The book concludes with a discussion of the alternatives to traditional regulation, including public ownership, franchise schemes, quality regulation, and new incentive systems. Throughout the book, issues from the telecommunications and energy industries are used to illustrate key points. Its integrated framework will make it useful to academic economists, regulatory analysts, business researchers, and advanced students of public utility economics.

Suggested Citation

  • Berg,Sanford V. & Tschirhart,John, 1989. "Natural Monopoly Regulation," Cambridge Books, Cambridge University Press, number 9780521338936, March.
  • Handle: RePEc:cup:cbooks:9780521338936
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    References listed on IDEAS

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    1. Coase, R H, 1976. "Adam Smith's Views of Man," Journal of Law and Economics, University of Chicago Press, vol. 19(3), pages 529-546, October.
    2. Conybeare, John A C & Murdoch, James C & Sandler, Todd, 1994. "Alternative Collective-Goods Models of Military Alliances: Theory and Empirics," Economic Inquiry, Western Economic Association International, vol. 32(4), pages 525-542, October.
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    Cited by:

    1. Juris, Andrej, 1998. "The emergence of markets in the natural gas industry," Policy Research Working Paper Series 1895, The World Bank.
    2. Richard Tol, 2011. "Regulating knowledge monopolies: the case of the IPCC," Climatic Change, Springer, vol. 108(4), pages 827-839, October.
    3. Gustavo Ferro & Omar Chisari, 2010. "Tópicos de Economía de la Regulación de los Servicios Públicos," Working Papers hal-00473038, HAL.
    4. Eid, Cherrelle & Reneses Guillén, Javier & Frías Marín, Pablo & Hakvoort, Rudi, 2014. "The economic effect of electricity net-metering with solar PV: Consequences for network cost recovery, cross subsidies and policy objectives," Energy Policy, Elsevier, vol. 75(C), pages 244-254.
    5. Arturo Leonardo Vásquez Cordano & Raúl Lizardo García Carpio & Dicky Edwin Quintanilla Acosta & Julio Salvador Jácome & David Orosco Zumarán, 2012. "Acceso a la Energía en el Perú : Algunas Opciones de Política," Working Papers 29, Osinergmin, Gerencia de Políticas y Análisis Económico.
    6. Chun Chun Ni, 2005. "Analysis of Applicable Liberalisation Models in China's Electric Power Market," Energy Working Papers 22008, East Asian Bureau of Economic Research.
    7. Dallas Burtraw & Keneth Harrison & Paul Turner, 1998. "Improving Efficiency in Bilateral Emission Trading," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(1), pages 19-33, January.
    8. Carlos Pombo, 2002. "Regulación de monopolios naturales con información asimétrica: Una introducción," BORRADORES DE INVESTIGACIÓN 003442, UNIVERSIDAD DEL ROSARIO.
    9. Ricardo Raineri, 2004. "Telecommunication Network Competition: An Equilibrium Analysis," Econometric Society 2004 Latin American Meetings 182, Econometric Society.
    10. David, Laurent & Le Breton, Michel & Merillon, Olivier, 2007. "Public Utility Pricing and Capacity Choice with Stochastic Demand," IDEI Working Papers 489, Institut d'Économie Industrielle (IDEI), Toulouse.
    11. Leopold Sgner, "undated". "Regulation vs. Competition in Telecommunications," Computing in Economics and Finance 1996 _053, Society for Computational Economics.

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