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Economies of Scale and Scope, Contestability, Windfall Profits and Regulatory Risk

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  • Michael J. Ryan

Abstract

In this paper I introduce new results on economies of scale and scope and develop implications of these results for contestability and regulation. This is done using a goal programming approach which endogenizes regulatory frameworks in a multiperiod and multiregion monopolistic and oligopolistic analysis. This explicitly spatial approach leads to useful distinctions between industrial contestability and market contestability and a multiperiod contestability‐based regulatory model. That model is then extended to a state preference framework with regulatory risk and windfall gains and losses.

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  • Michael J. Ryan, 2000. "Economies of Scale and Scope, Contestability, Windfall Profits and Regulatory Risk," Manchester School, University of Manchester, vol. 68(6), pages 701-722, December.
    • Handle: RePEc:bla:manchs:v:68:y:2000:i:6:p:701-722
    DOI: 10.1111/1467-9957.00226
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    1. Ryan, Michael J., 2004. "Goal programming, regulation and generalised economies of scale and scope," European Journal of Operational Research, Elsevier, vol. 152(1), pages 56-71, January.

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