Methods of State Regulation of Natural Monopolies' Activities
Abstract
This article analyzes potential issues arising in the market due to the activities of natural monopoly organizations. These include price increases, cartel agreements, disruptions in market demand, dominance of single products, causes of market failures, and problems related to market participants and types of activities. The theoretical and practical aspects of state regulation methods for the activities of natural monopoly organizations are discussed. The article also explores the goals and forms of regulation from the perspective of profitability.
References
Law of the Republic of Uzbekistan, No. 815-I. (1999). On Natural Monopolies (New Edition), Article 5. Tashkent: Government of Uzbekistan.
Decree of the President of the Republic of Uzbekistan, No. PF-6019. (2020). Additional Measures to Further Develop the Competitive Environment and Reduce State Participation in the Economy. Tashkent: President's Office.
Law of the Republic of Uzbekistan, No. 319-Ö. (2012). On Competition, Article 7. Tashkent: Government of Uzbekistan.
Littlechild, S. (1999). The Regulation of British Telecommunications Profitability. London: Department of Trade and Industry.
Helm, D. R., & Jenkinson, T. J. (1997). The assessment: Introducing competition into regulated industries. Oxford Review of Economic Policy, 13(1), 1–14. https://doi.org/10.1093/oxrep/13.1.1
Ulashov, B. (2004). Methods of regulation of natural monopolies. Economic Review, 5, 60.
Baumol, W. J., Panzar, J. C., & Willig, R. D. (1982). Contestable Markets and the Theory of Industry Structure. New York: Harcourt Brace Jovanovich.
Stigler, G. J. (1971). The theory of economic regulation. The Bell Journal of Economics and Management Science, 2(1), 3–21. https://doi.org/10.2307/3003160
Vickers, J., & Yarrow, G. (1988). Privatization: An Economic Analysis. Cambridge: MIT Press.
Shleifer, A. (1998). State versus private ownership. Journal of Economic Perspectives, 12(4), 133–150. https://doi.org/10.1257/jep.12.4.133
Laffont, J.-J., & Tirole, J. (1993). A Theory of Incentives in Procurement and Regulation. Cambridge: MIT Press.
Joskow, P. L. (2007). Regulation of natural monopolies. Handbook of Law and Economics, 2, 1227–1348. https://doi.org/10.1016/S1574-0730(07)02016-6
Armstrong, M., & Sappington, D. E. (2007). Recent developments in the theory of regulation. Handbook of Industrial Organization, 3, 1557–1700. https://doi.org/10.1016/S1573-448X(06)03027-2
Winston, C. (1993). Economic deregulation: Days of reckoning for microeconomists. Journal of Economic Literature, 31(3), 1263–1289.
Crew, M. A., & Kleindorfer, P. R. (2002). Regulatory economics: Twenty years of progress? Journal of Regulatory Economics, 21(1), 5–22. https://doi.org/10.1023/A:1019981112077
Averch, H., & Johnson, L. L. (1962). Behavior of the firm under regulatory constraint. American Economic Review, 52(5), 1052–1069.
Baldwin, R., Cave, M., & Lodge, M. (2012). Understanding Regulation: Theory, Strategy, and Practice (2nd ed.). Oxford: Oxford University Press.
Newbery, D. M. (1999). Privatization, Restructuring, and Regulation of Network Utilities. Cambridge: MIT Press.
Spulber, D. F. (1989). Regulation and Markets. Cambridge: MIT Press.
Parker, D., & Kirkpatrick, C. (2012). The economic impact of regulatory policy: A literature review of quantitative evidence. OECD Working Papers on Public Governance, 3, 1–39. https://doi.org/10.1787/5k455rfx8kwh-en