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Producer and Consumer Interests, the State‐Owned Pipeline, and Public Authority Pricing of Natural Gas

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  • A. L. HILLMAN

Abstract

This paper considers producer and consumer interests when state ownership of a pipeline provides a public authority with monopoly and monopsony power. In contrast with the producer/consumer conflict in the regulatory setting where self‐interested authorities choose the price at which producers and consumers directly transact with one another, in the pipeline case producers and consumers have a commonality of interest which is sustained even if the authorities take the view that it is politically inexpedient to take advantage of monopoly power with respect to consumers.

Suggested Citation

  • A. L. Hillman, 1984. "Producer and Consumer Interests, the State‐Owned Pipeline, and Public Authority Pricing of Natural Gas," The Economic Record, The Economic Society of Australia, vol. 60(1), pages 28-33, March.
    • Handle: RePEc:bla:ecorec:v:60:y:1984:i:1:p:28-33
    DOI: 10.1111/j.1475-4932.1984.tb00835.x
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    References listed on IDEAS

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    1. F. H. Gruen & A. L. Hillman, 1981. "A Review of Issues Pertinent to Liquid Fuel Policy," The Economic Record, The Economic Society of Australia, vol. 57(2), pages 111-127, June.
    2. repec:bla:ecorec:v:57:y:1981:i:157:p:111-27 is not listed on IDEAS
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    Cited by:

    1. Frederik Schmidt, 2008. "Innovation contests with temporary and endogenous monopoly rents," Review of Economic Design, Springer;Society for Economic Design, vol. 12(3), pages 189-208, September.
    2. STEPHEN J. DeCANIO, 1990. "Cross‐Contract Crediting Under Ferc Order 500," Contemporary Economic Policy, Western Economic Association International, vol. 8(2), pages 159-175, April.

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