From Rent-Seeking Activities to Economic Activities: The Strategic Transformation of the Deregulated Firm
The political theory of regulation holds that deregulation of utilities obliges the former monopoly to abandon its rent-seeking activities to concentrate upon economic activities. However, the arguments presented by scholars to explain this strategic transformation are not entirely convincing. We argue in this paper that the role and the nature of the firm during the deregulation process have been underestimated in previous works. After describing the main steps of this process, we thus propose a dynamic explanation of the strategic transformation of the deregulated firm based on the concepts of firm capabilities, access to rents and transaction costs.
|Date of creation:||01 Mar 1999|
|Contact details of provider:|| Postal: HEC Paris, 78351 Jouy-en-Josas cedex, France|
Web page: http://www.hec.fr/
More information through EDIRC
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.:
- Priest, George L, 1993. "The Origins of Utility Regulation and the "Theories of Regulation" Debate," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 289-323, April.
- Douglass C. North, 1990.
"A Transaction Cost Theory of Politics,"
Journal of Theoretical Politics,
, vol. 2(4), pages 355-367, October.
- North, D.C., 1990. "A Transaction Cost Theory of Politics," Papers 144, Washington St. Louis - School of Business and Political Economy.
- Raul Fabella, 1989. "Monopoly deregulation in the presence of Tullock activities," Public Choice, Springer, vol. 62(3), pages 287-293, September.
- Nicolai J. Foss, 1994. "Why transaction cost economics needs evolutionary economics," Revue d'Économie Industrielle, Programme National Persée, vol. 68(1), pages 7-26.
- Noll, Roger G., 1989. "Economic perspectives on the politics of regulation," Handbook of Industrial Organization,in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 22, pages 1253-1287 Elsevier.
- Eggertsson,Thrainn, 1990. "Economic Behavior and Institutions," Cambridge Books, Cambridge University Press, number 9780521348911, February.
- Stanley M. Besen & Joseph Farrell, 1994. "Choosing How to Compete: Strategies and Tactics in Standardization," Journal of Economic Perspectives, American Economic Association, vol. 8(2), pages 117-131, Spring. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:ebg:heccah:0680. 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: (Sandra Dupouy)
If references are entirely missing, you can add them using this form.