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Privatisation and Liberalisation of Network Utilities

Author

Listed:
  • Newbery, D.

Abstract

Privatisation of utilities is about ownership rather than control. Liberalisation can induce greather improvements in performance than privatisation alone. Regulation id inevitably inefficient, and adequately competitive network services may improve efficiency. History indicates that regulated vertical integration is durable so that liberalisation may be hard to sustain. Theory and evidence suggest that pricing network access and use is difficult., risking foreclosure without regulation. Progress in modelling competitioon over, for and between networks is reported. the English electricity industry demonstrates the importance of entry conditions and contracts, and the gains from restructuring are estimated.

Suggested Citation

  • Newbery, D., 1996. "Privatisation and Liberalisation of Network Utilities," Cambridge Working Papers in Economics 9620, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:9620
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    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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