The impact of who decides the rules for network use: A 'common pool' analysis of the investment dynamics in different gas network regulatory frames
The liberalization of the natural gas industry has been based on the idea that infrastructure may be used by different gas owners. Different players using the same resources can give raise to 'commons dilemmas', which are defined by a conflict between individual rationality and group rationality. To avoid 'commons' inefficiencies, solutions are to establish rules that constrain the players' use of the network. In order to manage efficiently these situations, 'common pool' agreements can be established either through external authority or by the users themselves. In gas industries both can be found in practice. Public gas regulators can play the role of external authority in some countries, whereas in some other, the infrastructure rules are designed and implemented by the users themselves through players' agreements. Based on a simple game theoretical model, we compare the economics properties of the 'EU common carriage' and the 'US contract carriage' systems in term of static and dynamic efficiency. Our analysis allows us to identify missing economic signals in the EU regulatory framework both for static and dynamic efficiency.
|Date of creation:||01 Sep 2012|
|Contact details of provider:|| Postal: Convento, Via delle Fontanelle, 19, 50014 San Domenico di Fiesole (FI) Italy|
Web page: http://www.eui.eu/RSCAS/
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.:
- Hubbard, R Glenn & Weiner, Robert J, 1991.
"Efficient Contracting and Market Power: Evidence from the U.S. Natural Gas Industry,"
Journal of Law and Economics,
University of Chicago Press, vol. 34(1), pages 25-67, April.
- R. Glenn Hubbard & Robert J. Weiner, 1990. "Efficient Contracting and Market Power: Evidence from the U.S. Natural Gas Industry," NBER Working Papers 3502, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:rsc:rsceui:2012/52. 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: (RSCAS web unit)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.