The New Economics Of Regulated Industries

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

Expanding Competition in Regulated Industries reviews the changing regulatory environment, notably incentive regulation and competition in regulated industries. Some of the major changes in electricity, gas, and telephone utilities allow for competition in local service through unbundling. This book is of interest to researchers, utility managers, regulatory commissions, and the Federal Government.

"Public Regulation" studies the formation of institutions and government policies that regulate industry, offering new data, new contexts, and new tools for analyzing the structure and performance of regulatory activity today. It addresses both how these institutions and policies came into being and how well or poorly they work. The contributors examine them variously, from economic, political, social, and historical points of view.The eleven original essays propose and demonstrate a wide variety of new techniques for assessing regulatory performance - general equilibrium theory, laboratory methods, the integration of rational expectations and game theory methods with regulations, cost-functions techniques, and probabilistic risk analysis - to reveal new empirical data from a range of regulated industries - agriculture, natural gas, nuclear power, airlines, health and environmental.Essays in the book's first part - "Design and Formation of Regulatory Regimes" - deal with the shaping of institutions and policies and with the political evolution of regulatory regimes.The second part of the book - "Assessment of Regulatory Performance" - covers theory and methods, performance and effects.Elizabeth E. Bailey is Dean of the Graduate School of Industrial Administration at Carnegie-Mellon University. "Public Regulation" is fourteenth in the series Regulation of Economic Activity, edited by Richard Schmalensee.

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

Brings economic regulation to life by tracing theoretical insights through to real-world applications in eight essential regulated sectors.

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.

A substantially revised and updated new edition of the leading text on business and government, with new material reflecting recent theoretical and methodological advances; includes further coverage of the Microsoft antitrust case, the deregulation of telecommunications and electric power, and new environmental regulations. This new edition of the leading text on business and government focuses on the insights economic reasoning can provide in analyzing regulatory and antitrust issues. Departing from the traditional emphasis on institutions, Economics of Regulation and Antitrust asks how economic theory and empirical analyses can illuminate the character of market operation and the role for government action and brings new developments in theory and empirical methodology to bear on these questions. The fourth edition has been substantially revised and updated throughout, with new material added and extended discussion of many topics. Part I, on antitrust, has been given a major revision to reflect advances in economic theory and recent antitrust cases, including the case against Microsoft and the Supreme Court's Kodak decision. Part II, on economic regulation, updates its treatment of the restructuring and deregulation of the telecommunications and electric power industries, and includes an analysis of what went wrong in the California energy market in 2000 and 2001. Part III, on social regulation, now includes increased discussion of risk-risk analysis and extensive changes to its discussion of environmental regulation. The many case studies included provide students not only pertinent insights for today but also the economic tools to analyze the implications of regulations and antitrust policies in the future.The book is suitable for use in a wide range of courses in business, law, and public policy, for undergraduates as well at the graduate level. The structure of the book allows instructors to combine the chapters in various ways according to their needs. Presentation of more advanced material is self-contained. Each chapter concludes with questions and problems.