Regulating Power: The Economics of Electricity in the Information Age. Carl Pechman.

Regulating Power: The Economics of Electricity in the Information Age. Carl Pechman. BOOK REVIEWS 375 between production and distribution. Thus, Dr. Kwoka’s finding that considerable vertical economies exist in the industry is significant. As noted, however, there appears to be a bias in his estimate. But beyond that, de-integration of the industry does not necessarily mean that vertical economies will be lost. The author notes ways to preserve these economies through the use of independent system operators or power pools. Dr. Kwoka’s other chief finding, that publicly-owned distribution systems tend to be especially efficient, prompts interesting policy questions. Logically, the con- clusion is that the optimal system performance may be best achieved through a public takeover of distribution. This may not be politically feasible in many sit- uations. However, the success of publicly-owned systems apparently lies in the ability of the regulators to monitor closely managerial operations, thus providing the regulator with good information on the system’s operating cost and investment requirements. If public takeovers are not desirable for political reasons, a second- best policy would be to reduce the size of distribution systems, making the flow of managerial information easier for regulators to handle and regulation more effec- tive. This has important implications for merger policy since the consolidation now Review of Industrial Organization Springer Journals

Regulating Power: The Economics of Electricity in the Information Age. Carl Pechman.

Loading next page...
Kluwer Academic Publishers
Copyright © 1998 by Kluwer Academic Publishers
Economics; Industrial Organization; Microeconomics
Publisher site
See Article on Publisher Site

There are no references for this article.

You’re reading a free preview. Subscribe to read the entire article.

DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

Monthly Plan

  • Read unlimited articles
  • Personalized recommendations
  • No expiration
  • Print 20 pages per month
  • 20% off on PDF purchases
  • Organize your research
  • Get updates on your journals and topic searches


Start Free Trial

14-day Free Trial

Best Deal — 39% off

Annual Plan

  • All the features of the Professional Plan, but for 39% off!
  • Billed annually
  • No expiration
  • For the normal price of 10 articles elsewhere, you get one full year of unlimited access to articles.



billed annually
Start Free Trial

14-day Free Trial