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- W314767 abstract "Under a cost-of-service regime, regulators can set a utility`s rates without any explicit reference to markets. Employing data on costs the utility expects to incur or has incurred, regulators use economically dubious formulas to allocate these costs to individual services and to set rates that recover the reported amounts. Generally, regulators need not make conjectures about the products and terms of service the utility would offer if regulation vanished, or about the speed at which competitors might enter an unregulated market. More important, regulators need not base any of their decisions on estimates of the utility`s prices in an unregulated market. An oft-asserted norm asks regulators to set prices and outputs at the levels that would arise in a competitive market. This norm is often without operational content and may often be incorrect as well. Perfect competition would usually be an inefficient as well as infeasible arrangement in industries where individual sellers enjoy substantial economies of scale." @default.
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- W314767 date "1995-12-31" @default.
- W314767 modified "2023-09-24" @default.
- W314767 title "Market-based rates for interstate gas pipelines: The relevant market and the real market" @default.
- W314767 hasPublicationYear "1995" @default.
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