Regulation of the Firm and Natural Monopoly

This book provides a comprehensive analysis and assessment of the purpose and effects of the main forms of regulation from the standpoint of industrial economics. The focus is on industries where market conduct is potentially substantially different from competitive. The first chapter analyzes the meaning and implications of the phenomenon known as natural monopoly, examining the cases for and against intervention to regulate pricing or entry behaviour. Other topics covered include the question of intra-firm efficiency; the major forms of regulation: state control, rate regulation and franchising schemes; and theoretical and empirical assessments of various relaxations in the regulatory regime. The subject matter should be of particular interest at present in a number of countries because of the considerable changes in regulatory frameworks that most governments are pursuing or have in prospect.