The 'baby and the bath water': avoiding efficiency mishaps in regulating monopoly infrastructure
Chairman's speech
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'.
Download the speech
Contents
Competition is not an end in itself
'Perfect' competition would be costly
The collective impact of substitution possibilities
Incomplete incentives to exploit market power
Countervailing 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
References