The 'baby and the bath water': avoiding efficiency mishaps in regulating monopoly infrastructure
On 5 July 2002, the Chairman Gary Banks presented a paper to the Independent Pricing and Regulatory Tribunal (IPART) conference 'Incentive Regulation at the Crossroads'.
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Competition is not an end in itself
'Perfect' competition would be costly
The collective impact of substitution possibilities
Incomplete incentives to exploit market power
Avoiding a numbers game
Monopoly power may be used efficiently
Investment matters too
The 'truncation problem'
Regulatory-induced service failure
Regulatory measures must be 'workable'
Regulators, too, are only human
Statutory guidance is fundamental
The need for balance