150:
tend to decrease with the increase in the total production output. The reason is that the actual product of the enterprise as it continues to expand, the original fixed costs are gradually diluted. This is particularly evident in companies with significant fixed-cost investments. Natural monopolies arise where the largest supplier in an industry, often the first supplier in a market, has an overwhelming cost advantage over other actual or potential competitors; this tends to be the case in industries where fixed costs predominate, creating economies of scale that are large in relation to the size of the market, as is the case in water and electricity services. The fixed cost of constructing a competing transmission network is so high, and the marginal cost of transmission for the incumbent so low, that it effectively bars potential competitors from the monopolist's market, acting as a nearly insurmountable barrier to entry into the market place.
127:. The marginal cost is the cost to the company of serving one more customer. In an industry where a natural monopoly does not exist, the vast majority of industries, the marginal cost decreases with economies of scale, then increases as the company has growing pains (overworking its employees, bureaucracy, inefficiencies, etc.). Along with this, the average cost of its products decreases and increases. A natural monopoly has a very different cost structure. A natural monopoly has a high fixed cost for a product that does not depend on output, but its marginal cost of producing one more good is roughly constant, and small.
20:
1556:
162:
the unit product price of a company that produces a specific product alone is higher than the corresponding unit product price of a joint production company, the companies that make it separately will lose money. These companies will either withdraw from the production field or be merged, forming a monopoly. Therefore, well-known
American economists Samuelson and Nordhaus pointed out that economies of scope can also produce natural monopolies.
1849:
part of the government, either to subject the business to reasonable conditions for the general advantage or to retain such power over it, that the profits of the monopoly may at least be obtained for the public." So, a legal prohibition against non-government competitors is often advocated. Whereby the rates are not left to the market but are regulated by the government; maximising profits, and subsequently societal reinvestment.
134:
1828:
The superiority of reward is not here the consequence of competition, but of its absence: not a compensation for disadvantages inherent in the employment, but an extra advantage; a kind of monopoly price, the effect not of a legal, but of what has been termed a natural monopoly... independently of...
1534:
The costs of building telecommunication poles and growing a cell network would just be too exhausting for other competitors to exist. Electricity requires grids and cables whilst water services and gas both require pipelines whose costs are just too high to be able to have existing competitors in the
153:
A firm with high fixed costs requires a large number of customers in order to have a meaningful return on investment. This is where economies of scale become important. Since each firm has large initial costs, as the firm gains market share and increases its output the fixed cost (what they initially
165:
Companies that take advantage of economies of scale often run into problems of bureaucracy; these factors interact to produce an "ideal" size for a company, at which the company's average cost of production is minimized. If that ideal size is large enough to supply the whole market, then that market
149:
reduces the number of possible entrants into the industry regardless of the earning of the corporations within. The production cost of an enterprise is not fixed, except for the effect of technology and other factors; even under the same conditions, the unit production cost of an enterprise can also
1860:
As with all monopolies, a monopolist that has gained its position through natural monopoly effects may engage in behaviour that abuses its market position. In cases where exploitation occurs, it often leads to calls from consumers for government regulation. Government regulation may also come about
169:
Once a natural monopoly has been established because of the large initial cost and that, according to the rule of economies of scale, the larger corporation (to a point) has a lower average cost and therefore an advantage over its competitors. With this knowledge, no firms will attempt to enter the
1843:
above the general level. A trade may also, from the nature of the case, be confined to so few hands, that profits may admit of being kept up by a combination among the dealers. It is well known that even among so numerous a body as the London booksellers, this sort of combination long continued to
161:
In real life, companies produce or provide single goods and services but often diversify their operations. Suppose the cost of having multiple products by one enterprise is lower than making them separately by several enterprises. In that case, it indicates that there is an economy of scope. Since
1848:
Mill also applied the term to land, which can manifest a natural monopoly by virtue of it being the only land with a particular mineral, etc. Furthermore, Mill referred to network industries, such as electricity and water supply, roads, rail and canals, as "practical monopolies", where "it is the
1922:
is an
American co-op that provides the majority of clearing and financial settlement across the securities industry ensuring they cannot abuse their market position to raise costs. In recent years a combined cooperative and open-source alternative to emergent web monopolies has been proposed, a
1838:
All the natural monopolies (meaning thereby those which are created by circumstances, and not by law) which produce or aggravate the disparities in the remuneration of different kinds of labour, operate similarly between different employments of capital. If a business can only be advantageously
1521:
The costs of laying tracks and building networks coupled with that of buying or leasing the trains prohibits or deters the entry of any competitor. Rail transport also fits other characteristics of a natural monopoly because it is assumed to be an industry with significant long run economies of
1864:
Common arguments in favour of regulation include the desire to limit a company's potentially abusive or unfair market power, facilitate competition, promote investment or system expansion, or stabilise markets. This is especially true in the case of essential utilities like electricity where a
1833:
Mill's initial use of the term concerned natural abilities. In contrast, common contemporary usage refers solely to market failure in a particular type of industry such as rail, post or electricity. Mill's development of the idea that 'what is true of labour, is true of capital'. He continues;
1507:, with all x being non-negative. In other words, if all companies have the same production cost function, the one with the better technology should monopolize the entire market such that the total cost is minimized, thus causing natural monopoly due to its technological advantage or condition.
564:
1889:
in each of these areas, many of which operate internationally bidding on utility contracts in other countries. However, this approach can raise its own problems. In the past, some governments have used the state-provided utility services as a source of cash flow for funding other government
1873:. In some countries an early solution to this perceived problem was government provision of, for example, a utility service. Enabling a monopolistic company with the ability to change prices without regulation can have devastating effects in society. For example, in Bolivia’s
185:(1977) provides the current formal definition of a natural monopoly. He defines a natural monopoly as "n industry in which multi-firm production is more costly than production by a monopoly" (p. 810). Baumol linked the definition to the mathematical concept of
1823:
Mill criticised Smith's neglect of an area that could explain wage disparity (the term itself was already in use in Smith's times, but with a slightly different meaning). Taking up the examples of professionals such as jewellers, physicians and lawyers, he said,
1451:
1829:
artificial monopolies , there is a natural monopoly in favour of skilled labourers against the unskilled, which makes the difference of reward exceed, sometimes in a manifold proportion, what is sufficient merely to equalize their advantages.
63:. Specifically, an industry is a natural monopoly if the total cost of one firm, producing the total output, is lower than the total cost of two or more firms producing the entire production. In that case, it is very probable that a company (
816:
1021:
Proposition: Global scale economies are sufficient but not necessary for (strict) ray subadditivity, the condition for natural monopoly in the production of a single product or in any bundle of outputs produced in fixed proportions.
384:
1917:
management where a monopoly's users or workers own the monopoly. For instance, the web's open-source architecture has both stimulated massive growth and avoided a single company controlling the entire market. The
375:
193:. Baumol also noted that for a firm producing a single product, scale economies were a sufficient condition but not a necessary condition to prove subadditivity, the argument can be illustrated as follows:
1206:
1340:
638:
1869:
for a product few can refuse. In general, though, regulation occurs when the government believes that the operator, left to his own devices, would behave in a way that is contrary to the
1297:
1004:
871:
1505:
268:
2028:, Book IV 'Influence of the progress of society on production and distribution', Chapter 2 'Influence of the Progress of Industry and Population on Values and Prices', para. 2
1894:. As a result, governments seeking funding began to seek other solutions, namely regulation and providing services on a commercial basis, often through private participation.
702:
1333:
1116:
1076:
1618:
1839:
carried on by a large capital, this in most countries limits so narrowly the class of persons who can enter into the employment, that they are enabled to keep their
952:
925:
898:
2306:
708:
137:
A graphical explanation of the inefficiencies of having several competitors in a naturally monopolistic market. AC = average cost (per customer), D = demand.
2163:
Saidu, Balkisu (8 May 2009). "Regulating the Abuse of the
Natural Monopoly of Pipelines in the Gas Industry vis-Ă -vis the Provision of Third Party Access".
59:
relative to the size of the market give the largest supplier in an industry, often the first supplier in a market, an overwhelming advantage over potential
559:{\displaystyle {\frac {C(\sum v_{j}y)}{\sum v_{j}}}<\sum {\frac {v_{i}}{\sum v_{j}}}{\frac {C(v_{i}y)}{v_{i}}}={\frac {\sum C(v_{i}y)}{\sum v_{j}}}}
1877:, a firm with a monopoly on the supply of water excessively increased water rates to fund a dam, leaving many unable to afford the essential good.
1535:
public market. However, natural monopolies are usually regulated and they face increasing competition from private networks and specialty carriers.
1897:
In recent years, bodies of information have observed the correlation between utility subsidies and welfare improvements. Today, across the world,
2277:
274:
130:
It is generally believed that there are two reasons for natural monopolies: one is economies of scale, and the other is economies of scope.
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1919:
1796:
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154:
invested) is divided among a larger number of customers. Therefore, in industries with large initial investment requirements,
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2409:
2363:
2340:
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2218:
1901:
are widely used to provide state-run water, electricity, gas, telecommunications, mass-transportation and postal services.
40:
1030:
On the other hand if firms produce many products scale economies are neither sufficient nor necessary for subadditivity:
651:
Proposition: Neither ray concavity nor ray average costs that decline everywhere are necessary for strict subadditivity.
2302:
196:
Proposition: Strict economies of scale are sufficient but not necessary for ray average cost to be strictly declining.
573:
2455:
1765:
2125:
2094:
2080:
2066:
2052:
2024:
1819:
1817:) believed that prices would reflect the costs of production in absence of an artificial or natural monopoly. In
1213:
71:) will form, providing all or most relevant products and/or services. This frequently occurs in industries where
1603:
960:
141:
All industries have costs associated with entering them. Often, a large portion of these costs is required for
2479:
1789:
1708:
823:
1456:
142:
88:
2373:
Filippini, Massimo (June 1998). "Are
Municipal Electricity Distribution Utilities Natural Monopolies?".
2197:
1637:
1572:
215:
2001:
Baumol, William J., 1977. "On the Proper Cost Tests for
Natural Monopoly in a Multiproduct Industry",
1446:{\displaystyle {\displaystyle {\begin{aligned}c(x)&=c(x^{1})+c(x^{2})+...+c(x^{k})\end{aligned}}}}
732:
667:
1874:
1782:
1081:
28:
2281:
2014:
W. J. Baumol, 1976. "Scale
Economies, Average Cost and the Profitability of Marginal-Cost Pricing"
2474:
1960:
1861:
at the request of a business hoping to enter a market otherwise dominated by a natural monopoly.
1049:
84:
1886:
1814:
1682:
1033:
Proposition: Strict concavity of a cost function is not sufficient to guarantee subadditivity.
75:
predominate, creating large economies of scale about the size of the market; examples include
2233:
1770:
1955:
1924:
1725:
1720:
1608:
930:
903:
876:
811:{\displaystyle C(y)={\begin{cases}c_{1},&y<y_{B}\\c_{2},&y>y_{B}\end{cases}}}
8:
1910:
19:
2098:, Book V, 'Of the Grounds and Limits of the Laisser-faire or Non-Interference Principle'
2444:
2421:
2352:
2180:
2145:
2126:"On the origins of the concept of natural monopoly: Economies of scale and competition"
2056:
Book II, Chapter XIV 'Of the
Differences of Wages in different Employments', para. 13-4
1989:
1744:
1666:
1525:
155:
36:
2451:
2428:
2405:
2398:
2359:
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2214:
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2149:
2038:
1852:
For a discussion of the historical origins of the term 'natural monopoly' see Mosca.
1730:
1715:
1598:
1586:
1310:
Proposition: Scale economies are neither necessary nor sufficient for subadditivity.
56:
2303:"What might a Coop Uber look like? (or should we be thinking bigger)? - Hello Ideas"
2384:
2172:
2137:
1898:
1810:
1739:
1693:
1689:
199:
Proposition: Strictly declining ray average cost implies strict ray subadditivity.
146:
100:
145:. Larger industries, like utilities, require an enormous initial investment. This
2240:
1970:
1931:
could be a driver-owned cooperative developing and sharing open-source software.
1870:
1698:
1677:
1623:
1547:
39:, one seller can serve the entire market at the downward-sloping section of its
1940:
1866:
1840:
1646:
1628:
182:
116:
104:
96:
80:
76:
2141:
2468:
1914:
1735:
1703:
186:
120:
2388:
1950:
1749:
1662:
1613:
72:
43:, meaning that it will have lower average costs than any potential entrant.
1909:
Alternatives to a state-owned response to natural monopolies include both
1809:
The development of the concept of natural monopoly is often attributed to
2176:
1672:
24:
1844:
exist. I have already mentioned the case of the gas and water companies.
158:
declines as output increases over a much larger range of output levels.
1965:
190:
124:
60:
32:
2254:
Water, Electricity, and the Poor: Who
Benefits from Utility Subsidies?
370:{\displaystyle C(\sum v_{j}y)/\sum v_{j}<C(\sum v_{i}y)/\sum v_{i}}
1651:
1581:
1555:
1529:
171:
68:
1891:
1885:
A wave of nationalisation across Europe after World War II created
1577:
1516:
133:
64:
52:
95:, etc. Natural monopolies were recognized as potential sources of
873:. The cost function is not concave, average cost increases after
2349:
1945:
1657:
55:
in an industry in which high infrastructural costs and other
2423:
Optimal regulation: the economic theory of natural monopoly
1992:, 2012. Microeconomics, Pearson Education, England, p. 394.
1928:
804:
92:
2350:
Baumol, William J.; Panzar, J. C.; Willig, R. D. (1982).
1313:
2354:
Contestable
Markets and the Theory of Industry Structure
1201:{\displaystyle C=y_{1}^{a}+y_{1}^{k}y_{2}^{k}+y_{2}^{a}}
2130:
The
European Journal of the History of Economic Thought
1009:
Therefore the cost function is strictly subadditivite.
642:
Therefore the cost function is strictly subadditivite.
103:
advocated government regulation to make them serve the
2333:
Natural Monopoly Regulation: Principles and Practices
1459:
1338:
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1125:
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558:
369:
262:
2084:, Book II, Chapter XVI, "Of Rent", para. 2 and 16
270:, when ray average costs are strictly declining:
2466:
2278:"Publication: Platform Cooperativism Conference"
633:{\displaystyle C(\sum v_{j}y)<\sum C(v_{i}y)}
1006:total cost of production by more than one firm
2234:Body of Knowledge on Infrastructure Regulation
1790:
115:Two different types of cost are important in
1890:activities, or as a means of obtaining hard
957:total cost of any output y by a single firm
2446:Regulation of the Firm and Natural Monopoly
1292:{\displaystyle C(1,1)=3>C(1,0)+C(0,1)=2}
1210:C is strictly concave and not subbaditive:
2376:Annals of Public and Cooperative Economics
2070:Book II, Chapter XV, 'Of Profits', para. 9
1797:
1783:
2372:
2108:
1920:Depository Trust and Clearing Corporation
1904:
1758:Enforcement authorities and organizations
999:{\displaystyle \leq c_{2}<2c_{1}\leq }
2441:
132:
18:
2395:
2358:. New York: Harcourt Brace Jovanovich.
2331:Berg, Sanford; John Tschirhart (1988).
2211:Cochabamba! : water war in Bolivia
2208:
866:{\displaystyle y_{r}<y_{b}<y_{s}}
704:in the piecewise-linear cost function:
31:is a natural monopoly. Due to enormous
2467:
2111:Economics: A Contemporary Introduction
1500:{\displaystyle \sum _{i=1}^{k}x^{i}=x}
1314:Mathematical Notation of Subadditivity
1118:in the cost function for two outputs:
2418:
2227:
2213:. Cambridge, Mass.: South End Press.
2162:
2123:
2113:. Thomson South-Western. p. 319.
189:; specifically, subadditivity of the
2256:. Washington, DC: World Bank. 2005.
1025:
177:
900:and ray average cost is greater at
13:
2324:
1554:
1018:Combining all propositions gives:
67:) or minimal number of companies (
14:
2491:
2427:. Cambridge, MA, USA: MIT Press.
2243:"General Concepts: Introduction."
2165:The Journal of Structured Finance
1766:International Competition Network
263:{\displaystyle v_{1}y,...,v_{n}y}
2450:. New York, NY, USA: Blackwell.
2309:from the original on 2016-02-05
2295:
2270:
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2202:
2191:
2156:
2117:
2101:
2095:Principles of Political Economy
2081:Principles of Political Economy
2067:Principles of Political Economy
2053:Principles of Political Economy
2025:Principles of Political Economy
1820:Principles of Political Economy
2404:. Cambridge University Press.
2400:The Theory of Natural Monopoly
2335:. Cambridge University Press.
2087:
2073:
2059:
2045:
2031:
2017:
2008:
1995:
1983:
1771:List of competition regulators
1434:
1421:
1400:
1387:
1378:
1365:
1352:
1346:
1280:
1268:
1259:
1247:
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697:{\displaystyle c_{1}<c_{2}}
627:
611:
599:
580:
535:
519:
491:
475:
413:
394:
346:
327:
300:
281:
99:as early as the 19th century;
1:
2109:McEachern, Willam A. (2005).
1976:
1855:
1111:{\displaystyle 0<k<1/2}
110:
1880:
1037:
655:
203:
7:
1934:
1510:
1071:{\displaystyle 0<a<1}
10:
2496:
2442:Waterson, Michael (1988).
2419:Train, Kenneth E. (1991).
1813:, who (writing before the
1638:Anti-competitive practices
1604:Herfindahl–Hirschman index
1573:History of competition law
1539:
212:Consider n output vectors
2142:10.1080/09672560802037623
2042:(1776) Book I, Chapter 10
2003:American Economic Review
1913:licensed technology and
1875:2000 Cochabamba protests
29:electricity transmission
23:In small countries like
2389:10.1111/1467-8292.00077
2209:Olivera, Oscar (2004).
2124:Mosca, Manuela (2008).
1927:, where, for instance,
166:is a natural monopoly.
2107:On subways, see also,
1905:Alternative regulation
1846:
1831:
1815:marginalist revolution
1683:Occupational licensing
1559:
1501:
1480:
1447:
1293:
1202:
1112:
1072:
1000:
948:
921:
894:
867:
812:
698:
634:
560:
371:
264:
174:or monopoly develops.
138:
44:
1887:state-owned companies
1836:
1826:
1558:
1502:
1460:
1448:
1294:
1203:
1113:
1073:
1001:
949:
947:{\displaystyle y_{r}}
922:
920:{\displaystyle y_{s}}
895:
893:{\displaystyle y_{b}}
868:
813:
699:
635:
561:
372:
265:
136:
22:
2480:Monopoly (economics)
2396:Sharkey, W. (1982).
2177:10.3905/jsf.13.4.105
1956:Price-cap regulation
1925:platform cooperative
1726:Occupational closure
1721:Dividing territories
1709:Essential facilities
1609:Market concentration
1457:
1334:
1214:
1123:
1082:
1050:
961:
931:
904:
877:
824:
709:
668:
574:
385:
275:
216:
16:Concept in economics
1865:monopoly creates a
1197:
1179:
1164:
1146:
2239:2013-10-03 at the
1745:Regulatory capture
1560:
1526:Telecommunications
1497:
1443:
1441:
1439:
1289:
1198:
1183:
1165:
1150:
1132:
1108:
1068:
996:
944:
917:
890:
863:
808:
803:
694:
630:
556:
367:
260:
156:average total cost
139:
89:telecommunications
45:
41:average cost curve
2434:978-0-262-20084-4
2411:978-0-521-27194-3
2365:978-0-15-513910-7
2342:978-0-521-33893-6
2263:978-0-8213-6342-3
2220:978-0-896-08702-6
2039:Wealth of Nations
1807:
1806:
1736:Misuse of patents
1731:Predatory pricing
1716:Exclusive dealing
1599:Barriers to entry
1587:Coercive monopoly
1303:
1302:
1026:Multiproduct case
1014:
1013:
647:
646:
554:
505:
467:
432:
178:Formal definition
57:barriers to entry
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2280:. Archived from
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2200:
2198:Natural Monopoly
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2114:
2105:
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2057:
2049:
2043:
2035:
2029:
2021:
2015:
2012:
2006:
1999:
1993:
1987:
1899:public utilities
1811:John Stuart Mill
1799:
1792:
1785:
1690:Product bundling
1592:Natural monopoly
1544:
1543:
1506:
1504:
1503:
1498:
1490:
1489:
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1450:
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1433:
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1399:
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1377:
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1318:A cost function
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1207:
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1204:
1199:
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1178:
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1002:
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991:
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915:
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896:
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888:
872:
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869:
864:
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861:
849:
848:
836:
835:
817:
815:
814:
809:
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806:
800:
799:
779:
778:
765:
764:
744:
743:
703:
701:
700:
695:
693:
692:
680:
679:
656:
639:
637:
636:
631:
623:
622:
595:
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538:
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511:
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451:
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389:
376:
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353:
342:
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320:
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307:
296:
295:
269:
267:
266:
261:
256:
255:
228:
227:
204:
170:industry and an
147:barrier to entry
101:John Stuart Mill
77:public utilities
49:natural monopoly
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2325:Further reading
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2241:Wayback Machine
2232:
2228:
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2207:
2203:
2196:
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2092:
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2078:
2074:
2064:
2060:
2050:
2046:
2036:
2032:
2022:
2018:
2013:
2009:
2000:
1996:
1988:
1984:
1979:
1971:Standardization
1937:
1907:
1883:
1871:public interest
1858:
1803:
1699:Refusal to deal
1678:Tacit collusion
1624:Relevant market
1548:Competition law
1542:
1533:
1520:
1513:
1485:
1481:
1475:
1464:
1458:
1455:
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1120:
1100:
1083:
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1079:
1051:
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1028:
987:
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971:
967:
962:
959:
958:
938:
934:
932:
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928:
911:
907:
905:
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901:
884:
880:
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875:
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857:
853:
844:
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831:
827:
825:
822:
821:
802:
801:
795:
791:
783:
774:
770:
767:
766:
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739:
735:
728:
727:
710:
707:
706:
688:
684:
675:
671:
669:
666:
665:
618:
614:
590:
586:
575:
572:
571:
547:
543:
539:
526:
522:
512:
510:
499:
495:
482:
478:
471:
469:
460:
456:
452:
446:
442:
440:
425:
421:
417:
404:
400:
390:
388:
386:
383:
382:
361:
357:
349:
337:
333:
315:
311:
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251:
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223:
219:
217:
214:
213:
180:
113:
17:
12:
11:
5:
2493:
2483:
2482:
2477:
2475:Market failure
2463:
2462:
2456:
2439:
2433:
2416:
2410:
2393:
2370:
2364:
2347:
2341:
2326:
2323:
2320:
2319:
2294:
2269:
2262:
2245:
2226:
2219:
2201:
2190:
2171:(4): 105–112.
2155:
2136:(2): 317–353.
2116:
2100:
2086:
2072:
2058:
2044:
2030:
2016:
2007:
1994:
1981:
1980:
1978:
1975:
1974:
1973:
1968:
1963:
1958:
1953:
1948:
1943:
1941:Network effect
1936:
1933:
1906:
1903:
1882:
1879:
1867:captive market
1857:
1854:
1841:rate of profit
1805:
1804:
1802:
1801:
1794:
1787:
1779:
1776:
1775:
1774:
1773:
1768:
1760:
1759:
1755:
1754:
1753:
1752:
1747:
1742:
1733:
1728:
1723:
1718:
1713:
1712:
1711:
1706:
1696:
1687:
1686:
1685:
1680:
1675:
1670:
1660:
1649:
1647:Monopolization
1641:
1640:
1634:
1633:
1632:
1631:
1629:Merger control
1626:
1621:
1616:
1611:
1606:
1601:
1596:
1595:
1594:
1589:
1575:
1567:
1566:
1565:Basic concepts
1562:
1561:
1551:
1550:
1541:
1538:
1537:
1536:
1523:
1512:
1509:
1496:
1493:
1488:
1484:
1478:
1473:
1470:
1467:
1463:
1436:
1431:
1427:
1423:
1420:
1417:
1414:
1411:
1408:
1405:
1402:
1397:
1393:
1389:
1386:
1383:
1380:
1375:
1371:
1367:
1364:
1361:
1358:
1356:
1354:
1351:
1348:
1345:
1342:
1341:
1315:
1312:
1305:
1304:
1301:
1300:
1288:
1285:
1282:
1279:
1276:
1273:
1270:
1267:
1264:
1261:
1258:
1255:
1252:
1249:
1246:
1243:
1240:
1237:
1234:
1231:
1228:
1225:
1222:
1219:
1195:
1190:
1186:
1182:
1177:
1172:
1168:
1162:
1157:
1153:
1149:
1144:
1139:
1135:
1131:
1128:
1107:
1103:
1099:
1096:
1093:
1090:
1087:
1067:
1064:
1061:
1058:
1055:
1043:
1042:
1027:
1024:
1016:
1015:
1012:
1011:
995:
990:
986:
982:
979:
974:
970:
966:
941:
937:
914:
910:
887:
883:
860:
856:
852:
847:
843:
839:
834:
830:
805:
798:
794:
790:
787:
784:
782:
777:
773:
769:
768:
763:
759:
755:
752:
749:
747:
742:
738:
734:
733:
731:
726:
723:
720:
717:
714:
691:
687:
683:
678:
674:
661:
660:
649:
648:
645:
644:
629:
626:
621:
617:
613:
610:
607:
604:
601:
598:
593:
589:
585:
582:
579:
550:
546:
542:
537:
534:
529:
525:
521:
518:
515:
509:
502:
498:
493:
490:
485:
481:
477:
474:
463:
459:
455:
449:
445:
439:
436:
428:
424:
420:
415:
412:
407:
403:
399:
396:
393:
364:
360:
356:
352:
348:
345:
340:
336:
332:
329:
326:
323:
318:
314:
310:
306:
302:
299:
294:
290:
286:
283:
280:
259:
254:
250:
246:
243:
240:
237:
234:
231:
226:
222:
209:
208:
183:William Baumol
179:
176:
117:microeconomics
112:
109:
97:market failure
81:water services
15:
9:
6:
4:
3:
2:
2492:
2481:
2478:
2476:
2473:
2472:
2470:
2459:
2457:0-631-14007-7
2453:
2448:
2447:
2440:
2436:
2430:
2425:
2424:
2417:
2413:
2407:
2402:
2401:
2394:
2390:
2386:
2382:
2378:
2377:
2371:
2367:
2361:
2356:
2355:
2348:
2344:
2338:
2334:
2329:
2328:
2308:
2304:
2298:
2284:on 2016-02-05
2283:
2279:
2273:
2265:
2259:
2255:
2249:
2242:
2238:
2235:
2230:
2222:
2216:
2212:
2205:
2199:
2194:
2186:
2182:
2178:
2174:
2170:
2166:
2159:
2151:
2147:
2143:
2139:
2135:
2131:
2127:
2120:
2112:
2104:
2097:
2096:
2090:
2083:
2082:
2076:
2069:
2068:
2062:
2055:
2054:
2048:
2041:
2040:
2034:
2027:
2026:
2020:
2011:
2004:
1998:
1991:
1986:
1982:
1972:
1969:
1967:
1964:
1962:
1959:
1957:
1954:
1952:
1949:
1947:
1944:
1942:
1939:
1938:
1932:
1930:
1926:
1921:
1916:
1915:co-operatives
1912:
1902:
1900:
1895:
1893:
1888:
1878:
1876:
1872:
1868:
1862:
1853:
1850:
1845:
1842:
1835:
1830:
1825:
1822:
1821:
1816:
1812:
1800:
1795:
1793:
1788:
1786:
1781:
1780:
1778:
1777:
1772:
1769:
1767:
1764:
1763:
1762:
1761:
1757:
1756:
1751:
1748:
1746:
1743:
1741:
1737:
1734:
1732:
1729:
1727:
1724:
1722:
1719:
1717:
1714:
1710:
1707:
1705:
1704:Group boycott
1702:
1701:
1700:
1697:
1695:
1691:
1688:
1684:
1681:
1679:
1676:
1674:
1671:
1668:
1664:
1661:
1659:
1656:Formation of
1655:
1654:
1653:
1650:
1648:
1645:
1644:
1643:
1642:
1639:
1636:
1635:
1630:
1627:
1625:
1622:
1620:
1617:
1615:
1612:
1610:
1607:
1605:
1602:
1600:
1597:
1593:
1590:
1588:
1585:
1584:
1583:
1579:
1576:
1574:
1571:
1570:
1569:
1568:
1564:
1563:
1557:
1553:
1552:
1549:
1546:
1545:
1531:
1527:
1524:
1518:
1515:
1514:
1508:
1494:
1491:
1486:
1482:
1476:
1471:
1468:
1465:
1461:
1429:
1425:
1418:
1415:
1412:
1409:
1406:
1403:
1395:
1391:
1384:
1381:
1373:
1369:
1362:
1359:
1357:
1349:
1343:
1329:
1326:at an output
1325:
1321:
1311:
1308:
1299:
1286:
1283:
1277:
1274:
1271:
1265:
1262:
1256:
1253:
1250:
1244:
1241:
1238:
1235:
1229:
1226:
1223:
1217:
1208:
1193:
1188:
1184:
1180:
1175:
1170:
1166:
1160:
1155:
1151:
1147:
1142:
1137:
1133:
1129:
1126:
1105:
1101:
1097:
1094:
1091:
1088:
1085:
1065:
1062:
1059:
1056:
1053:
1045:
1044:
1040:
1039:
1036:
1035:
1034:
1031:
1023:
1019:
1010:
1007:
993:
988:
984:
980:
977:
972:
968:
964:
955:
939:
935:
912:
908:
885:
881:
858:
854:
850:
845:
841:
837:
832:
828:
818:
796:
792:
788:
785:
780:
775:
771:
761:
757:
753:
750:
745:
740:
736:
729:
724:
718:
712:
689:
685:
681:
676:
672:
663:
662:
658:
657:
654:
653:
652:
643:
640:
624:
619:
615:
608:
605:
602:
596:
591:
587:
583:
577:
569:
568:Which gives:
566:
548:
544:
540:
532:
527:
523:
516:
513:
507:
500:
496:
488:
483:
479:
472:
461:
457:
453:
447:
443:
437:
434:
426:
422:
418:
410:
405:
401:
397:
391:
380:
377:
362:
358:
354:
350:
343:
338:
334:
330:
324:
321:
316:
312:
308:
304:
297:
292:
288:
284:
278:
257:
252:
248:
244:
241:
238:
235:
232:
229:
224:
220:
211:
210:
206:
205:
202:
201:
200:
197:
194:
192:
191:cost function
188:
187:subadditivity
184:
175:
173:
167:
163:
159:
157:
151:
148:
144:
135:
131:
128:
126:
122:
121:marginal cost
118:
108:
106:
102:
98:
94:
90:
86:
82:
78:
74:
73:capital costs
70:
66:
62:
58:
54:
50:
42:
38:
34:
30:
26:
21:
2445:
2422:
2399:
2380:
2374:
2353:
2332:
2311:. Retrieved
2297:
2286:. Retrieved
2282:the original
2272:
2253:
2248:
2229:
2210:
2204:
2193:
2168:
2164:
2158:
2133:
2129:
2119:
2110:
2103:
2093:
2089:
2079:
2075:
2065:
2061:
2051:
2047:
2037:
2033:
2023:
2019:
2010:
2002:
1997:
1985:
1951:Market forms
1908:
1896:
1884:
1863:
1859:
1851:
1847:
1837:
1832:
1827:
1818:
1808:
1750:Rent-seeking
1663:Price fixing
1614:Market power
1591:
1327:
1323:
1319:
1317:
1309:
1306:
1209:
1119:
1032:
1029:
1020:
1017:
1008:
956:
819:
705:
650:
641:
570:
567:
381:
378:
271:
198:
195:
181:
168:
164:
160:
152:
140:
129:
114:
48:
46:
2005:67, 809–22.
1961:Public good
1911:open source
1673:Bid rigging
1453:such that
1324:subadditive
1307:Therefore:
379:Therefore:
105:public good
85:electricity
61:competitors
37:market size
33:fixed costs
25:New Zealand
2469:Categories
2383:(2): 157.
2313:2016-01-30
2288:2016-01-30
1990:Perloff, J
1977:References
1966:Quasi-rent
1856:Regulation
1740:copyrights
1619:SSNIP test
143:investment
125:fixed cost
111:Definition
35:and small
2185:153866300
2150:154480729
1652:Collusion
1582:oligopoly
1530:Utilities
1462:∑
994:≤
965:≤
606:∑
584:∑
541:∑
514:∑
454:∑
438:∑
419:∑
398:∑
355:∑
331:∑
309:∑
285:∑
172:oligopoly
69:oligopoly
2307:Archived
2237:Archived
1935:See also
1892:currency
1578:Monopoly
1517:Railways
1511:Examples
954:. Also:
79:such as
65:monopoly
53:monopoly
1881:History
1658:cartels
1540:History
2454:
2431:
2408:
2362:
2339:
2260:
2217:
2183:
2148:
1946:LoopCo
1522:scale.
1041:Proof
659:Proof
207:Proof
2181:S2CID
2146:S2CID
1694:tying
1667:cases
927:than
51:is a
2452:ISBN
2429:ISBN
2406:ISBN
2360:ISBN
2337:ISBN
2258:ISBN
2215:ISBN
1929:Uber
1738:and
1692:and
1580:and
1528:and
1242:>
1095:<
1089:<
1078:and
1063:<
1057:<
1046:Let
978:<
851:<
838:<
820:Let
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754:<
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322:<
123:and
93:mail
2385:doi
2173:doi
2138:doi
1330:if
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2381:69
2379:.
2305:.
2179:.
2169:13
2167:.
2144:.
2134:15
2132:.
2128:.
119::
107:.
91:,
87:,
83:,
47:A
27:,
2460:.
2437:.
2414:.
2391:.
2387::
2368:.
2345:.
2316:.
2291:.
2266:.
2223:.
2187:.
2175::
2152:.
2140::
1798:e
1791:t
1784:v
1669:)
1665:(
1532::
1519::
1495:x
1492:=
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1410:.
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1374:1
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1366:(
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1360:=
1353:)
1350:x
1347:(
1344:c
1328:x
1320:c
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1284:=
1281:)
1278:1
1275:,
1272:0
1269:(
1266:C
1263:+
1260:)
1257:0
1254:,
1251:1
1248:(
1245:C
1239:3
1236:=
1233:)
1230:1
1227:,
1224:1
1221:(
1218:C
1194:a
1189:2
1185:y
1181:+
1176:k
1171:2
1167:y
1161:k
1156:1
1152:y
1148:+
1143:a
1138:1
1134:y
1130:=
1127:C
1106:2
1102:/
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1054:0
989:1
985:c
981:2
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969:c
940:r
936:y
913:s
909:y
886:b
882:y
859:s
855:y
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842:y
833:r
829:y
797:B
793:y
786:y
781:,
776:2
772:c
762:B
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730:{
725:=
722:)
719:y
716:(
713:C
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686:c
677:1
673:c
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612:(
609:C
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581:(
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536:)
533:y
528:i
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520:(
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489:y
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328:(
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305:/
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298:y
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282:(
279:C
258:y
253:n
249:v
245:,
242:.
239:.
236:.
233:,
230:y
225:1
221:v
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
