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