How Concentrated are Global Infrastructure Markets?

In infrastructure, the possibility of a positive relationship between operators' profitability and the degree of concentration is a major political issue in view of the wide diversity of feelings about the potential role of the private sector. This is particularly important in view of (i) the l...

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Main Authors:	Benitez, Daniel, Estache, Antonio
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ANECDOTAL EVIDENCE AUCTIONS ECONOMIES OF SCALE ELECTRICITY ELECTRICITY GENERATION GENERATION INFRASTRUCTURE SERVICES LEGISLATION LINES MARKET CONCENTRATION MARKET DEFINITION MARKET POWER MARKET SHARE MONOPOLIES NEGOTIATIONS NORTH AMERICA OCEANIA POINT POLICY RESEARCH PRIVATE SECTOR PUBLIC POLICY PUBLIC SERVICES PUBLICITY RETAILING SALES SANITATION SERVICE DELIVERY SPREAD SUPPLIERS TURNOVER WATER SYSTEMS WEST
Online Access:	http://documents.worldbank.org/curated/en/2005/02/5642260/concentrated-global-infrastructure-markets http://hdl.handle.net/10986/8853

id	okr-10986-8853
recordtype	oai_dc
spelling	okr-10986-88532021-04-23T14:02:42Z How Concentrated are Global Infrastructure Markets? Benitez, Daniel Estache, Antonio ANECDOTAL EVIDENCE AUCTIONS ECONOMIES OF SCALE ELECTRICITY ELECTRICITY GENERATION GENERATION INFRASTRUCTURE SERVICES LEGISLATION LINES MARKET CONCENTRATION MARKET DEFINITION MARKET POWER MARKET SHARE MONOPOLIES NEGOTIATIONS NORTH AMERICA OCEANIA POINT POLICY RESEARCH PRIVATE SECTOR PUBLIC POLICY PUBLIC SERVICES PUBLICITY RETAILING SALES SANITATION SERVICE DELIVERY SPREAD SUPPLIERS TURNOVER WATER SYSTEMS WEST In infrastructure, the possibility of a positive relationship between operators' profitability and the degree of concentration is a major political issue in view of the wide diversity of feelings about the potential role of the private sector. This is particularly important in view of (i) the large residual degree of monopolies, (ii) the protection they are granted through exclusivity clauses built in service delivery contracts and (iii) the widespread sense that the same operators tend to be present in most of the privatized operations. The main purpose of this paper is to provide a first set of quantitative assessments of the degree of concentration in infrastructure at the global and at the regional level. Concentration issues were identified in only about 20 percent of the cases studied, a presumption of concentration was found in another 30 percent of the cases. We find no correlation between the degree of concentration and the degree of reform adopted by a region or a sector. In more general terms, we find no scope for simple encompassing regional or sectoral statements because issues are region- and sector-specific. We conclude by arguing that there are a few cases and regions in which it would make sense for a supranational competition or regulation agency to ensure that the interests of the users are protected more effectively against the risks of collusion and other types of anti-competitive behaviors local regulators would not be equipped to address. 2012-06-22T20:07:51Z 2012-06-22T20:07:51Z 2005-02 http://documents.worldbank.org/curated/en/2005/02/5642260/concentrated-global-infrastructure-markets http://hdl.handle.net/10986/8853 English Policy Research Working Paper; No. 3513 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper 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	ANECDOTAL EVIDENCE AUCTIONS ECONOMIES OF SCALE ELECTRICITY ELECTRICITY GENERATION GENERATION INFRASTRUCTURE SERVICES LEGISLATION LINES MARKET CONCENTRATION MARKET DEFINITION MARKET POWER MARKET SHARE MONOPOLIES NEGOTIATIONS NORTH AMERICA OCEANIA POINT POLICY RESEARCH PRIVATE SECTOR PUBLIC POLICY PUBLIC SERVICES PUBLICITY RETAILING SALES SANITATION SERVICE DELIVERY SPREAD SUPPLIERS TURNOVER WATER SYSTEMS WEST
spellingShingle	ANECDOTAL EVIDENCE AUCTIONS ECONOMIES OF SCALE ELECTRICITY ELECTRICITY GENERATION GENERATION INFRASTRUCTURE SERVICES LEGISLATION LINES MARKET CONCENTRATION MARKET DEFINITION MARKET POWER MARKET SHARE MONOPOLIES NEGOTIATIONS NORTH AMERICA OCEANIA POINT POLICY RESEARCH PRIVATE SECTOR PUBLIC POLICY PUBLIC SERVICES PUBLICITY RETAILING SALES SANITATION SERVICE DELIVERY SPREAD SUPPLIERS TURNOVER WATER SYSTEMS WEST Benitez, Daniel Estache, Antonio How Concentrated are Global Infrastructure Markets?
relation	Policy Research Working Paper; No. 3513
description	In infrastructure, the possibility of a positive relationship between operators' profitability and the degree of concentration is a major political issue in view of the wide diversity of feelings about the potential role of the private sector. This is particularly important in view of (i) the large residual degree of monopolies, (ii) the protection they are granted through exclusivity clauses built in service delivery contracts and (iii) the widespread sense that the same operators tend to be present in most of the privatized operations. The main purpose of this paper is to provide a first set of quantitative assessments of the degree of concentration in infrastructure at the global and at the regional level. Concentration issues were identified in only about 20 percent of the cases studied, a presumption of concentration was found in another 30 percent of the cases. We find no correlation between the degree of concentration and the degree of reform adopted by a region or a sector. In more general terms, we find no scope for simple encompassing regional or sectoral statements because issues are region- and sector-specific. We conclude by arguing that there are a few cases and regions in which it would make sense for a supranational competition or regulation agency to ensure that the interests of the users are protected more effectively against the risks of collusion and other types of anti-competitive behaviors local regulators would not be equipped to address.
format	Publications & Research :: Policy Research Working Paper
author	Benitez, Daniel Estache, Antonio
author_facet	Benitez, Daniel Estache, Antonio
author_sort	Benitez, Daniel
title	How Concentrated are Global Infrastructure Markets?
title_short	How Concentrated are Global Infrastructure Markets?
title_full	How Concentrated are Global Infrastructure Markets?
title_fullStr	How Concentrated are Global Infrastructure Markets?
title_full_unstemmed	How Concentrated are Global Infrastructure Markets?
title_sort	how concentrated are global infrastructure markets?
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2005/02/5642260/concentrated-global-infrastructure-markets http://hdl.handle.net/10986/8853
_version_	1764407016955052032

How Concentrated are Global Infrastructure Markets?

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