Why regulate utilities?

Authors

DOI:

https://doi.org/10.30800/mises.2020.v8.1217

Keywords:

regulations, utilities, competition, monopoly

Abstract

The modern economic theory defines regulation as a necessary measure in utilities’ markets due to a supposed low compettitivity in those industries. Altough the regulatory methods which ar used in those industries have been consantly criticised for their inefficiency, th belief that the regulations are necessary has been kept unchanged. Therefore, the obective of this article is to prove that the convencional economic arguments that justify regulation in utilities are based on misled premises about these industries’ dynamics.

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References

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AVERCH, H; JOHNSON, L. The firm under regulatory constraint. Am. Econ. Rev., v. 55, n. 1052, 1962.

BEHLING, Burton N. Competition and monopoly. Public utility industries, p. 19-20, 1938.

CHADWICK, Edwin. Results of different principles of legislation and administration in Europe: Service 22. J. Royal Society, v. 22, n. 381, 1859.

STIGLER, George J. A theory of oligopoly. J. Pol. Econ., v. 44, 1984.

STIGLER, George; FRIEDMAN, Claire. What can regulators regulate? The case of electricity. J. Law & Econ., v. 1., n. 5, 1962.

FRIEDMAN, Milton. Capitalism and Freedom. Chicago: Chicago Press, 1962.

SAMUELSON, Paul A. Economics, v. 461, 6th rev, 1964.

Published

2019-12-20

How to Cite

1.
Demsetz H, Lanza JFR. Why regulate utilities?. MisesJournal [Internet]. 2019Dec.20 [cited 2021May9];8. Available from: https://www.misesjournal.org.br/misesjournal/article/view/1217