The Decline Of Service In The Regulated Industries

This authoritative guide presents the reasons behind industry regulation and the legal basis for it. Text discusses calculating rate base and rate of return, cost allocation, and rate design. Added attention is given to many of the new market-oriented forms of regulation, such as service unbundling, equal access to bottleneck facilities, competitive contracting, managed competition in health care, and incentive regulation.

An authority on regulation who has served on the Council of Economic Advisers calls attention to the explosive growth in regulation since the late 1960s and its effects and examines movements for reform and deregulation

The standard wisdom among political scientists has been that "iron triangles" operated among regulatory agencies, the regulated industries, and members of Congress, all presumably with a stake in preserving regulation that protected the industries from competition. Despite almost unanimous agreement among economists that such regulation was inefficient, it seemed highly unlikely that deregulation could occur. Yet between 1975 and 1980 major deregulatory changes that strongly favored competition did take place in a wide range of industries. The results are familiar to airline passengers, users of telephone service, and trucking freight shippers, among others. Martha Derthick and Paul J. Quirk ask why this deregulation happened. How did a diffuse public interest prevail over the powerful industry and union interests that sought to preserve regulation? Why did the regulatory commissions, which were expected to be a major obstacle to deregulation, instead take the initiative on behalf of it? And why did influential members of Congress push for even greater deregulation? The authors concentrate on three cases: airlines, trucking, and telecommunications. They find important similarities among the cases and discuss the implications of these findings for two broader topics: the role that economic analysis has played in policy change, and the capacity of the American political system for transcending narrow interests.

Committee Serial No. 14. pt. 1/v.1: Examines the ocean freight industry antitrust law exemptions on an individual case basis to determine levels of domestic noncompetitive shipping activities caused by the dual rate system used for conference and nonconference carriers. Includes submitted correspondence and statistics on shipping companies' operations (p. 186-1014). Hearing was held in NYC; pt. 1/v.2: Continuation of hearings on antitrust law exemptions in the ocean freight industry. Includes submitted correspondence and statistics on shipping companies' operation; pt. 1/v.4: Continuation of hearings examining monopoly within federally regulated industries. Focuses on the ocean freight industry and the need for additional regulation of federally chartered steamship conference rates and independent shippers rates. Includes numerous statistical insertions on shipping company operations; pt. 1/v.5: Continuation of hearings on purported shipping industry monopolistic practices; pt. 2/v.1: Continuation of hearings on antitrust problems in the ocean freight industry; pt. 2/v.2: Continuation of hearings on monopoly problems in the ocean freight shipping industry; pt. 3/v.1: Committee Serial No. 10. Continuation of investigation into allegations of antitrust violations by the ocean freight industry through use of secret gentlemen's agreements, discriminatory anticompetitive practices, and violations of conference agreements; pt. 3/v.2: Continuation of investigation into ocean freight shipping industry anticompetitive practices.

Risk and Return for Regulated Industries provides a much-needed, comprehensive review of how cost of capital risk arises and can be measured, how the special risks regulated industries face affect fair return, and the challenges that regulated industries are likely to face in the future. Rather than following the trend of broad industry introductions or textbook style reviews of utility finance, it covers the topics of most interest to regulators, regulated companies, regulatory lawyers, and rate-of-return analysts in all countries. Accordingly, the book also includes case studies about various countries and discussions of the lessons international regulatory procedures can offer. Presents a unified treatment of the regulatory principles and practices used to assess the required return on capital Addresses current practices before exploring the ways methods play out in practice, including irregularities, shortcomings, and concerns for the future Focuses on developed economies instead of providing a comprehensive global reviews Foreword by Stewart C. Myers