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Producer and Consumer Interests, the State‐Owned Pipeline, and Public Authority Pricing of Natural Gas*
Author(s) -
HILLMAN A. L.
Publication year - 1984
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1984.tb00835.x
Subject(s) - monopsony , monopoly , natural monopoly , business , pipeline (software) , state (computer science) , power (physics) , industrial organization , economics , market economy , commerce , marketing , law and economics , microeconomics , physics , algorithm , quantum mechanics , computer science , programming language
This paper considers producer and consumer interests when state ownership of a pipeline provides a public authority with monopoly and monopsony power. In contrast with the producer/consumer conflict in the regulatory setting where self‐interested authorities choose the price at which producers and consumers directly transact with one another, in the pipeline case producers and consumers have a commonality of interest which is sustained even if the authorities take the view that it is politically inexpedient to take advantage of monopoly power with respect to consumers.