The Concept of Open Network Provision in Large Technical Systems

G³nter Knieps
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G³nter Knieps: Institute of Transportation Economics and Regional Policy, Albert-Ludwigs-Universitõt, Freiburg, Germany

Homo Oeconomicus, 1997, vol. 14, 357-369

Abstract: This paper is a disagreed approach to network regulation is provided. The question is analyzed to what extent interconnection/access problems can be solved by voluntary market contract of the parties involved and to what extent government interventions should be implemented. The key concept is the identification of monopolistic bottlenecks where market power can be identified ex ante. In all other parts of large technical systems regulatory interventions are detrimental. Possible fallacies with respect to regulations of monopolistic bottlenecks (inadequate price-setting rules, extending regulatory basis) are pointed out.

Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:hom:homoec:v:14:y:1997:p:357-369

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