The private sector invests heavily in infrastructure, makes reasonable returns, and improves productivity when regulators reduce the firm?s information advantage, induce the firm (through pricing) to operate efficiently, and institute safeguarding mechanisms to protect the firm against...

In response to the recent wave ofprivatizing and regulating monopolies in developing countries, the authors evaluate the impact of different regulatory schemes on private sector behavior in the telecommunications sector in seven countries. They find that regulation is most effective - meaning,...