A primer on the welfare effects of regulatory reforms in network industries

Lidia Ceriani () and Massimo Florio

Departmental Working Papers from Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano

Abstract: Starting from an industry where production is provided by a public monopolist, we look at the effects on the consumers' surplus of a sequence of reforms in network industry. Using a simple comparative statics framework, we find indifference conditions in consumers' surplus between respectively public monopoly, unregulated private monopoly, regulated private monopoly, vertically disintegrated monopoly, duopoly and liberalized market. The results are determined by the relative size of the x-inefficiencies of the public monopolist, allocative inefficiencies of private monopoly, the cost of unbundling and costs related to establishing a competitive market.

Keywords: Privatization; unbundling; liberalization; network industries (search for similar items in EconPapers)
JEL-codes: D40 L32 L33 L51 (search for similar items in EconPapers)
Date: 2008-07-08
New Economics Papers: this item is included in nep-com, nep-ene, nep-mic, nep-net and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:mil:wpdepa:2008-23

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