Why Regulate Utilities

  title={Why Regulate Utilities},
  author={Harold Demsetz},
  journal={The Journal of Law and Economics},
  • H. Demsetz
  • Published 1968
  • Economics
  • The Journal of Law and Economics
Current economic doctrine offers to its students a basic relationship between the number of firms that produce for a given market and the degree to which competitive results will prevail. Stated explicitly or suggested implicitly is the doctrine that price and output can be expected to diverge to a greater extent from their competitive levels the fewer the firms that produce the product for the market. This relationship has provided the logic that motivates much of the research devoted to… Expand
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