Creative Destruction and the Natural Monopoly 'Death Spiral': Can Electricity Distribution Utilities Survive the Incumbent's Curse?

2013 ◽  
Author(s):  
Paul R Newbury
Keyword(s):  
Creative Destruction ◽  
Natural Monopoly ◽  
Electricity Distribution ◽  
Death Spiral

scholarly journals Competitive Bidding for a Long-Term Electricity Distribution Contract

2002 ◽  
Vol 1 (1) ◽  
Author(s):  
Stephen Littlechild
Keyword(s):  
Distribution Network ◽  
Natural Monopoly ◽  
Competitive Bidding ◽  
Electricity Distribution ◽  
Public Provision ◽  
Short Term ◽  
Investment Under Uncertainty ◽  
Monopoly Regulation ◽  
Competitive Contracting

Demsetz (1968) and Posner (1972) suggested competitive bidding as an alternative to natural monopoly regulation. Williamson (1976) and Goldberg (1976) argued that the problems of natural monopoly regulation are inherent in long-term investment under uncertainty. Long- and short-term franchising contracts may be more problematic than regulation. This paper reviews the literature and UK experience. It examines London Underground's recent long-term (thirty-year) contract for its electricity distribution network. This has avoided the Oakland CATV problems described by Williamson, but involves considerable resources to monitor. Competitive contracting seems feasible and advantageous versus public provision. Its merits versus utility regulation warrant further consideration.

Natural Monopoly Regulation

1989 ◽  
Author(s):  
Sanford V. Berg ◽  
John Tschirhart
Keyword(s):  
Natural Monopoly ◽  
Monopoly Regulation
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