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 … retail price and infrastructure quality relative to the integrated monopoly outcome increases welfare. Third, we argue that …

This paper studies the effect of soft-budget constraints in a pure adverse selection model of monopoly regulation. We … regulatory set-up in which firms are free to enter natural monopoly markets and to choose their price and output levels as in the …

In general, the introduction of competition into the public sector seems to lead to higher cost-efficiency in service …, we investigate the effects of deregulation on the cost-reducing incentives of a public firm. Our results show that a firm … that is a public monopoly has greater incentive to conduct cost-reducing investment than a public firm within mixed …