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Public-Private Monopoly

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  • Moszoro, Marian

Abstract

This paper presents comparative statics of organizational modes of natural monopoly in public utilities with a focus on co-ownership and co-governance. Private monopoly lowers output and increases the price to maximize profit; public monopoly incurs higher costs due to the lack of know-how; and a regulated monopoly results in regulation costs to overcome informational asymmetries. A public-private partnership arises as an efficient organization mode when it enables the internalization of private know-how and saves regulation costs due to correspondingly sufficient private and public residual control rights. Public-private partnerships support higher prices than marginal costs due to rent sharing, with its upper price frontier decreasing in private residual control rights.

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  • Moszoro, Marian, 2018. "Public-Private Monopoly," MPRA Paper 102697, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:102697
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    References listed on IDEAS

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    Cited by:

    1. Marian Moszoro & Gonzalo Araya & Fernanda Ruiz-Nuñez & Jordan Schwartz, 2015. "What Drives Private Participation in Infrastructure Developing Countries?," Palgrave Macmillan Books, in: Stefano Caselli & Guido Corbetta & Veronica Vecchi (ed.), Public Private Partnerships for Infrastructure and Business Development, chapter 0, pages 19-44, Palgrave Macmillan.
    2. Hanna Kociemska & Boguslaw Poltorak, 2021. "The Influence of Social Impact Bonds on Public–Private Partnership Success: The Case of Higher Education," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 423-438.

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    More about this item

    Keywords

    Natural Monopolies; Operating Efficiency; Public-Private Partnerships; Organization Structure; Regulation;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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