Chapter

Privatizing Monopolies

BERNARDO BORTOLOTTI DOMENICO SINISCALCO

in The Challenges of Privatization

Published in print March 2004 | ISBN: 9780199249343
Published online April 2004 | e-ISBN: 9780191600845 | DOI: http://dx.doi.org/10.1093/0199249342.003.0007
 Privatizing Monopolies

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This chapter provides stylized facts about privatization in network industries, with a special focus on electricity. It shows that regulation is the key for successful sales in monopolistic industries. First, it allows the accomplishment of large scale programs. Second, and more importantly, it determines the success of privatization in terms of proceeds. Establishing a credible regulatory framework allows governments to reduce uncertainty, and to raise more proceeds. Under specific circumstances, the chapter shows that revenue-efficienct trade-offs may disappear.

Keywords: electricity; market liberalization; monopolies; regulation; utilities; vertical integration

Chapter.  7208 words.  Illustrated.

Subjects: Financial Markets

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