Review of Industrial Organization 12: 833–835, 1997. Book Review Networks, Infrastructure and the New Task for Regulation. Werner Sichel and Donald L. Alexander, editors. Ann Arbor: University of Michigan Press, 1996, 169 pages, $44.50. Buyer and seller relationships are dear to the heart of many economists. Nonethe- less, we often pay insufﬁcient attention to the means by which sellers provide products to buyers. One method of providing a product is through the use of a network. For example, networks allow ﬁrms in the telecommunication and electric utility industries the means to offer service more efﬁciently. However, networks can also promote market power. With respect to the airline industry, for example, net- works (i.e., the “hub-and-spoke” system) have allowed certain airlines to dominate hub airports. Consequently, the extent to which networks induce market power is an important issue. Furthermore, given the importance of network-related industries, whether or not these industries should be regulated, and to what extent, must also be addressed. The essays contained in the book Networks, Infrastructure, and the New Task for Regulation, edited by Sichel and Alexander, provide an enlightened discussion of many of the issues pertaining to networks. The book is split into three parts, each
Review of Industrial Organization – Springer Journals
Published: Sep 29, 2004
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