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Resolution of Conjectures on the Sustainability of Natural Monopoly

✍ Scribed by Thijs ten Raa

Book ID
124749605
Publisher
The RAND Corporation
Year
1984
Tongue
English
Weight
212 KB
Volume
15
Category
Article
ISSN
0741-6261

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In a recent issue of this journal, Ralph Bradburd (1995) argues that the efficiency gains of privatising a natural monopoly are likely to outweigh any loss of allocative efficiency. However, a trade-off based on a definition of the total surplus which includes profits but not internal rents is flawe