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The impact of productive efficiency and quality of a regulated local public utility on final goods prices

Alessandro Petretto ()

Working Papers - Economics from Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa

Abstract: In this note we reconstruct the process by a which the decisions of a regulated local public utility, in terms of productive efficiency and quality of the service provided, impact on prices of final consumption goods, supplied in a oligopolistic market operating in the same geographic area. We obtain some formula for these effects which can be quantified by estimating firms’ conditional input demand function of the public service and firms’ inverse demand function for the public good, non-rival, component of this.

Keywords: regulation; x-efficiency; oligopoly (search for similar items in EconPapers)
JEL-codes: D11 D21 L51 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2007
New Economics Papers: this item is included in nep-eff, nep-mic, nep-pbe and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:frz:wpaper:wp2007_06

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