Competition Policy for Natural Monopolies in a Developing Market Economy
Not all industries in post-socialist countries are appropriate targets for demonopolization and deregulation: as in the West, some "natural monopoly" sectors will require continued regulation to protect consumers from monopoly abuses. This paper focuses on three aspects of the design of regulatory policy in these countries: the appropriate sectors for regulation, the appropriate treatment of unregulated subsidiaries of regulated firms, and the appropriate regulatory regime for regulated sectors.
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