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Economies of Scale and Scope, Contestability, Windfall Profits and Regulatory Risk
Author(s) -
Ryan Michael J.
Publication year - 2000
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/1467-9957.00226
Subject(s) - monopolistic competition , economics , scope (computer science) , windfall gain , oligopoly , microeconomics , economies of scale , scale (ratio) , industrial organization , monopoly , macroeconomics , computer science , physics , quantum mechanics , cournot competition , programming language
In this paper I introduce new results on economies of scale and scope and develop implications of these results for contestability and regulation. This is done using a goal programming approach which endogenizes regulatory frameworks in a multiperiod and multiregion monopolistic and oligopolistic analysis. This explicitly spatial approach leads to useful distinctions between industrial contestability and market contestability and a multiperiod contestability‐based regulatory model. That model is then extended to a state preference framework with regulatory risk and windfall gains and losses.