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Public and Private Investments in Regulated Network Industries: Coordination and Competition Issues

  • Jullien, Bruno
  • Pouyet, Jérôme
  • Sand-Zantman, Wilfried

This paper analyzes the relationship between a national regulator, an incumbent and a local government in a context where investment in a new network has to be undertaken. In the light of the recent debates on the competition between private firms and local governments, we analyze the limits to be put on the local public intervention in these markets. We show that banning local government intervention can be welfare-enhancing either in the presence inter-districts externality or with asymmetric information or in case of conflicting objectives between the regulator and local governments.

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File URL: http://www.tse-fr.eu/images/doc/wp/io/wp_io_72_2009.pdf
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Paper provided by Toulouse School of Economics (TSE) in its series TSE Working Papers with number 09-072.

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Date of creation: Jul 2009
Date of revision:
Publication status: Published in The Review of Network Economics, vol.�9, n°4, 2010.
Handle: RePEc:tse:wpaper:21953
Contact details of provider: Phone: (+33) 5 61 12 86 23
Web page: http://www.tse-fr.eu/

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  1. Caillaud, Bernard & Tirole, Jean, 2001. "Essential Facility Financing and Market Structure," CEPR Discussion Papers 2802, C.E.P.R. Discussion Papers.
  2. Jullien, Bruno & Pouyet, Jérôme & Sand-Zantman, Wilfried, 2009. "Contracting and Regulation under the Threat of Duplication," IDEI Working Papers 563, Institut d'Économie Industrielle (IDEI), Toulouse.
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