Infrastructure Quality in Deregulated Industries: Is There an Underinvestment Problem?
نویسندگان
چکیده
We investigate how various institutional settings affect a network provider's incentives to invest in infrastructure quality. Under reasonable assumptions on demand, investment incentives turn out to be smaller under vertical separation than under vertical integration, though we also provide counterexamples. The introduction of downstream competition for the market can sometimes improve incentives. With suitable non-linear access prices investment incentives under separation become identical to those under integration. Infrastructure Quality in Deregulated Industries: Is there an Underinvestment Problem?
منابع مشابه
Nash equilibrium strategy in the deregulated power industry and comparing its lost welfare with Iran wholesale electricity market
With the increasing use of different types of auctions in market designing, modeling of participants’ behaviors to evaluate the market structure is one of the main discussions in the studies related to the deregulated power industries. In this article, we apply an approach of the optimal bidding behavior to the Iran wholesale electricity market as a restructured electric power industry and mode...
متن کاملMulti-Stage Fuzzy Load Frequency Control Based on Multi-objective Harmony Search Algorithm in Deregulated Environment
A new Multi-Stage Fuzzy (MSF) controller based on Multi-objective Harmony Search Algorithm (MOHSA) is proposed in this paper to solve the Load Frequency Control (LFC) problem of power systems in deregulated environment. LFC problem are caused by load perturbations, which continuously disturb the normal operation of power system. The objectives of LFC are to mini small size the transient deviati...
متن کاملUrbanisation and the State of Infrastructure in the Developing World Cities
The dominant policy decision emphasis on urbanisation problem in developing countries is itsrate of growth, ignoring the level of provision of resources, including the infrastructure, to match this growth. It isagainst this background that the paper undertook a broad analysis of the state of infrastructure in developing countriesusing such indices as access and quality of water supply, sanitati...
متن کاملA New Approach for Accurate Pricing of Reactive Power and Its Application to Cost Allocation in Deregulated Electricity Markets
Reactive power management plays an essential role in the secure operation of the power system as an ancillary service. Although in electricity markets, the particular attention is paid to active power, the reactive power also plays an important on total generation costs of electricity. On the other hand, as it is mainly confined to local consumption, to avoid market power and maintain the se...
متن کاملDeregulating network industries: dealing with price-quality tradeoffs
This paper examines the effects of introducing competition into monopolized network industries on prices and infrastructure quality. Analyzing a model with reduced-form demand, we first show that deregulating an integrated monopoly cannot simultaneously decrease the retail price and increase infrastructure quality. Second, we derive conditions under which reducing both retail price and infrastr...
متن کامل