Post-Privatization Performance-Regulating Telecommunications in the U.K : Testing for Regulatory Capture

Post-Privatization Performance-Regulating Telecommunications in the U.K : Testing for Regulatory Capture

Privatized in 1984, British Telecommunications (BT) is the longest-standing privatized utility in the United Kingdom. Comparing BT's stock market returns over a long period with returns for a comparable sample of firms not affected by regulat...

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Bibliographic Details
Main Author:	Dnes, Antony
Format:	Viewpoint
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	DENATIONALIZATION MONOPOLIES MARKET COMPETITION MARKET RETURNS PRIVATE INTEREST PUBLIC INTEREST REGULATORY AGENCY TELECOMMUNICATIONS ANTITRUST ANTITRUST LAW CONSUMER INTERESTS CONSUMERS DECISIONMAKING DEREGULATION DUOPOLY ECONOMIC REGULATION ECONOMISTS ELECTRICITY MERGERS MONOPOLY MONOPOLY POWER NATURAL MONOPOLIES OLIGOPOLIES POSITIVE EFFECTS PRICE CONTROLS PRIVATE SECTOR REGULATOR REGULATORY AGENCIES REGULATORY BODIES REGULATORY CAPTURE REGULATORY ENVIRONMENT REGULATORY PROCESS REGULATORY PROGRAMS TAX TAXATION TELECOMMUNICATIONS TOTAL OUTPUT TREASURY UTILITIES WELFARE ECONOMICS
Online Access:	http://documents.worldbank.org/curated/en/1995/10/696999/post-privatization-performance-regulating-telecommunications-uk-testing-regulatory-capture http://hdl.handle.net/10986/11647

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Summary:	Privatized in 1984, British Telecommunications (BT) is the longest-standing privatized utility in the United Kingdom. Comparing BT's stock market returns over a long period with returns for a comparable sample of firms not affected by regulation, the author assesses whether the new telecommunications regulatory regime has been "captured" (unduly influenced) by consumer groups, BT, or BT's competitor. He concludes that some regulatory decisions have favored consumers, some have accommodated BT, and some have favored BT's competitor and that, overall, the regulatory regime has checked monopoly power.