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Cost-Oriented Models of Network Industries Price Regulation

In: Operations Research Proceedings 2008

Author

Listed:
  • Eleonora Fendekova

    (Department of Business Economics, University of Economics Bratislava)

  • Michal Fendek

    (Department of Operations Research and Econometrics, University of Economics Bratislava)

Abstract

Summary The existence of pure monopoly in network industries increases the role of regulation mechanisms in connection with objectification and increase in their social effectiveness. The objective of regulation mechanisms is to find an appropriate proportion between price and product supply of network industry under assumption of the existence competitive market. With regard to analysis of equilibrium in network industries models it is important to point out that except for competition policy protection the state fulfils another specific task - regulation of network industries. The aim of the paper is to examine the equilibrium conditions in the market of network industries. The state inuences proportional relations between price and supply of network industry production. The conditions for equilibrium of network industries and methods of their regulations will be examined in the paper. The stress will be laid on the regulation on the base of cost - return over costs regulation

Suggested Citation

  • Eleonora Fendekova & Michal Fendek, 2009. "Cost-Oriented Models of Network Industries Price Regulation," Springer Books, in: Bernhard Fleischmann & Karl-Heinz Borgwardt & Robert Klein & Axel Tuma (ed.), Operations Research Proceedings 2008, chapter 12, pages 73-78, Springer.
    • Handle: RePEc:spr:sprchp:978-3-642-00142-0_12
    DOI: 10.1007/978-3-642-00142-0_12
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