This paper analyzes the effect of inter urban buses competing on a few routes against trains within an established railway network. In line with expectations, we show that this can lead to unprofitable train service on these routes. However, within an established railway network with every track...

This paper argues that the sharing economy — through the use of the Internet and real time reputational feedback mechanisms — is providing a solution to the “lemons problem” that many regulations, and regulators, have spent decades attempting to overcome. Section I provides an overview...

Ein Jahr nach Inkrafttreten der deutschen Energierechtsnovelle sind die Konturen der zukünftigen Strommarktregulierung noch zu weiten Teilen ungeklärt. Vor diesem aktuellen wirtschaftspolitischem Hintergrund wird in diesem Papier die Frage nach einer sachgerechten Ausrichtung der...

We study the choice between regulating interconnection charges or delegating their determination to the operators, both in a non-mature and a mature market. Three regulatory regimes are considered: full, cost-based and bill-and-keep. Delegation corresponds to bargaining about the interconnection...

This paper presents comparative statics of organizational modes of natural monopoly in public utilities with a focus on co-ownership and co-governance. Private monopoly lowers output and increases the price to maximize profit; public monopoly incurs higher costs due to the lack of know-how; and...

The aim of this paper is to investigate the welfare effect of privatization in oligopoly when the government takes into account the distortionary effect of raising funds by taxation (shadow cost of public funds). We analyze the impact of the change in ownership not only on the objective function...