The assumption that under optimal nodal pricing passive transmission line owners collect all the congestion rents on a constrained line, as well as incremental loss rents, is not supported by the experimental results in a three-node radial network system with four buyers and six generators at...

The incentive failure of government ownership of public utility industries has helped to motivate the worldwide privatization of these industries. Similar shortcomings of rate-of-return regulation in the United States has led to major changes in the way in which the gas, telephone and cable TV...