Abstract
The market-based fundamental principle of competition is not present for natural monopolies. For this reason, monitoring corporations that possess a natural monopoly is necessary within the scope of price setting, in order to minimize welfare loss due to the lack of effect from competition. Network infrastructures, such as electricity and gas networks, are classic examples of natural monopolies.
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© 2010 Springer-Verlag Berlin Heidelberg
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Hierzenberger, M. (2010). Introduction. In: Price Regulation and Risk. Lecture Notes in Economics and Mathematical Systems, vol 641. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-12047-3_1
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DOI: https://doi.org/10.1007/978-3-642-12047-3_1
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Publisher Name: Springer, Berlin, Heidelberg
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Online ISBN: 978-3-642-12047-3
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