Competition in Network Industries : Where and How to Introduce It
If privatizing network industries is to bring lasting public benefits, governments should also attempt to introduce competition. The scope for such competition is growing with increasing deregulation and technological innovation. As technology cont...
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| Format: | Viewpoint |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/1997/01/695040/competition-network-industries-introduce http://hdl.handle.net/10986/11597 |
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okr-10986-115972021-06-14T11:04:13Z Competition in Network Industries : Where and How to Introduce It Klein, Michael Gray, Philip ASSET VALUATION AUCTIONS BARRIERS TO ENTRY CENTRAL PLANNING COMPETITIVE MARKETS CONSUMER PROTECTION CONSUMERS DEREGULATION EXTERNALITIES MONOPOLIES MONOPOLY NATURAL MONOPOLY NETWORKS OPTIMIZATION POWER PLANTS PRICE REGULATION PRICING PRINCIPLES PRODUCERS REGULATORY REGIMES SUNK COSTS SUPPLIERS TELECOMMUNICATIONS TELECOMMUNICATIONS NETWORKS AUCTIONS CONCESSIONS NEW TECHNOLOGIES MARKET COMPETITION VOTING FREE ENTRY NETWORK INDUSTRIES NATURAL MONOPOLIES SUNK COSTS If privatizing network industries is to bring lasting public benefits, governments should also attempt to introduce competition. The scope for such competition is growing with increasing deregulation and technological innovation. As technology continues to improve, the use of "smart markets"--computer-assisted auction systems to clear competitive but complex markets--is likely to become feasible for an ever-expanding group of products and countries. This Note outlines the opportunities for introducing network competition--competition for the market, competition over existing networks, and competition among networks. It briefly considers in each case whether it will become easier or more complicated. It looks at how these opportunities could be applied in different networks. And it concludes with some basic guidelines for introducing competition: 1) the more complex the network and the lower the sunk cost, the more value there is likely to be in introducing competition from other networks. 2) Where technical change is rapid, defining the bonds of natural monopoly will be more difficult and the dynamic benefits of competition will be large. 3) Where government capacity to be benevolently and efficiently recognize natural monopoly and establish barriers to entry is weak, entry probably should not be limited by policy. 2012-08-13T15:29:45Z 2012-08-13T15:29:45Z 1997-01 http://documents.worldbank.org/curated/en/1997/01/695040/competition-network-industries-introduce http://hdl.handle.net/10986/11597 English Viewpoint: Public Policy for the Private Sector; Note No. 104 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Viewpoint Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ASSET VALUATION AUCTIONS BARRIERS TO ENTRY CENTRAL PLANNING COMPETITIVE MARKETS CONSUMER PROTECTION CONSUMERS DEREGULATION EXTERNALITIES MONOPOLIES MONOPOLY NATURAL MONOPOLY NETWORKS OPTIMIZATION POWER PLANTS PRICE REGULATION PRICING PRINCIPLES PRODUCERS REGULATORY REGIMES SUNK COSTS SUPPLIERS TELECOMMUNICATIONS TELECOMMUNICATIONS NETWORKS AUCTIONS CONCESSIONS NEW TECHNOLOGIES MARKET COMPETITION VOTING FREE ENTRY NETWORK INDUSTRIES NATURAL MONOPOLIES SUNK COSTS |
| spellingShingle |
ASSET VALUATION AUCTIONS BARRIERS TO ENTRY CENTRAL PLANNING COMPETITIVE MARKETS CONSUMER PROTECTION CONSUMERS DEREGULATION EXTERNALITIES MONOPOLIES MONOPOLY NATURAL MONOPOLY NETWORKS OPTIMIZATION POWER PLANTS PRICE REGULATION PRICING PRINCIPLES PRODUCERS REGULATORY REGIMES SUNK COSTS SUPPLIERS TELECOMMUNICATIONS TELECOMMUNICATIONS NETWORKS AUCTIONS CONCESSIONS NEW TECHNOLOGIES MARKET COMPETITION VOTING FREE ENTRY NETWORK INDUSTRIES NATURAL MONOPOLIES SUNK COSTS Klein, Michael Gray, Philip Competition in Network Industries : Where and How to Introduce It |
| relation |
Viewpoint: Public Policy for the Private Sector; Note No. 104 |
| description |
If privatizing network industries is to
bring lasting public benefits, governments should also
attempt to introduce competition. The scope for such
competition is growing with increasing deregulation and
technological innovation. As technology continues to
improve, the use of "smart
markets"--computer-assisted auction systems to clear
competitive but complex markets--is likely to become
feasible for an ever-expanding group of products and
countries. This Note outlines the opportunities for
introducing network competition--competition for the market,
competition over existing networks, and competition among
networks. It briefly considers in each case whether it will
become easier or more complicated. It looks at how these
opportunities could be applied in different networks. And it
concludes with some basic guidelines for introducing
competition: 1) the more complex the network and the lower
the sunk cost, the more value there is likely to be in
introducing competition from other networks. 2) Where
technical change is rapid, defining the bonds of natural
monopoly will be more difficult and the dynamic benefits of
competition will be large. 3) Where government capacity to
be benevolently and efficiently recognize natural monopoly
and establish barriers to entry is weak, entry probably
should not be limited by policy. |
| format |
Publications & Research :: Viewpoint |
| author |
Klein, Michael Gray, Philip |
| author_facet |
Klein, Michael Gray, Philip |
| author_sort |
Klein, Michael |
| title |
Competition in Network Industries : Where and How to Introduce It |
| title_short |
Competition in Network Industries : Where and How to Introduce It |
| title_full |
Competition in Network Industries : Where and How to Introduce It |
| title_fullStr |
Competition in Network Industries : Where and How to Introduce It |
| title_full_unstemmed |
Competition in Network Industries : Where and How to Introduce It |
| title_sort |
competition in network industries : where and how to introduce it |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/1997/01/695040/competition-network-industries-introduce http://hdl.handle.net/10986/11597 |
| _version_ |
1764417309553721344 |