By Michael A. Crew (auth.), Michael A. Crew (eds.)
`Overall the e-book presents the reader with insights into the real concerns concerning the law of public utilitites. those who find themselves drawn to a extensive survey of advancements within the region will locate a number of chapters beneficial. Researchers with pursuits in new paintings in public utilities and their legislation will locate a lot to stimulate their thinking.'
Small company Economics three, 1991
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Extra info for Deregulation and Diversification of Utilities
FCC Docket No. 87-313 (August). c. 1983. Regulation of British Telecommunications' Profitability. Report to The Secretary of State, Department of Industry, London (February). T. Masson, and RJ. Reynolds. 1986. " Mimeo, Cornell University (March 24). , P. Pestieau, and H. Tulkens. 1984. " In The Performance of Public Enterprises-Concepts and Measurement, edited by M. Marchand, P. Pestieau, and H. Tulkens, pp. 3-42. Amsterdam: North-Holland. OFTEL. 1986. Review of British Telecom's Tariff Changes.
3 PRICE CAP REGULATION OF TELECOMMUNICATIONS SERVICES: A LONG-RUN APPROACH Ingo Vogelsang Introduction With its recent Notice of Proposed Rulemaking the United States Federal Communications Commission (FCC 1987) has opened a discussion about the possible use of price caps to replace rate-of-return regulation for telecommunications services. The basic idea ofthese price caps is closely related to the RPI-X formula suggested by Littlechild (1983) for British Telecom and implemented there, along with British Telecom's privatization, in 1984.
In particular, greater economies of scope may exist in regulated industries today, and restrictions that limit diversification into other goods or services can be inefficient because they prevent realization of such economies (Baumol and Willig 1985; Mac Avoyand Robinson 1985). To the extent this is true, there is a trade-off between gaining efficiencies from freer productline decisions by public utilities, which can realize the economies of scope, and the possible loss of regulatory effectiveness that also may accompany diversification.