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On the origins of the concept of natural monopoly: Economies of scale and competition

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  • Manuela Mosca

Abstract

The present article contributes to the history of the concept of natural monopoly, focusing on the reconstruction of its origins. The paper considers various facets of natural monopoly: the expression itself; the singling out of the concrete situations to which it is applied; the inquiry into economies of scale; the consideration of their incompatibility with perfect competition; the drawing of the diagram; and the need for government intervention. In this paper each of the above features is separately examined from a historical perspective. Priorities and influences are then traced, and in particular it is found that the pivotal figure in this historical reconstruction is that of Edgeworth. The relation of the concept of natural monopoly with that of competition is also highlighted, as well as its policy implications.

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  • Manuela Mosca, 2008. "On the origins of the concept of natural monopoly: Economies of scale and competition," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 15(2), pages 317-353.
    • Handle: RePEc:taf:eujhet:v:15:y:2008:i:2:p:317-353
    DOI: 10.1080/09672560802037623
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    Cited by:

    1. Cherry, Barbara A., 2014. "Historical mutilation: How misuse of 'public utility and 'natural monopoly' misdirects US telecommunications policy development," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106881, International Telecommunications Society (ITS).
    2. Neri Salvadori & Rodolfo Signorino, 2014. "Adam Smith on Monopoly Theory. Making good a lacuna," Scottish Journal of Political Economy, Scottish Economic Society, vol. 61(2), pages 178-195, May.
    3. Béraud, Alain, 2011. "Walras et l’économie publique," OEconomia, Editions NecPlus, vol. 2011(03), pages 351-392, September.
    4. Escudé, Guillermo J., 2021. "Karl Marx´s Theory of Capitalism Exposition, Critique, and Appraisal," MPRA Paper 113685, University Library of Munich, Germany.
    5. Atif Ansar & Martin Pohlers, 2014. "Fluid populations, immobile assets: Synchronizing infrastructure investments with shifting demography," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 17(2), pages 222-248, June.
    6. Gregory, Julian, 2020. "Governance, scale, scope: A review of six South African electricity generation infrastructure megaprojects," Utilities Policy, Elsevier, vol. 66(C).
    7. Hercules Haralambides, 2017. "Globalization, public sector reform, and the role of ports in international supply chains," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 19(1), pages 1-51, March.
    8. Cherry, Barbara A., 2015. "Historical distortion: How misuse of "public utility and "natural monopoly" misdirects U.S. telecommunications policy development," 2015 Regional ITS Conference, Los Angeles 2015 146320, International Telecommunications Society (ITS).
    9. Poinsot, Philippe, 2016. "Jules Dupuit And The Railroads: What Is The Role Of The State?," Journal of the History of Economic Thought, Cambridge University Press, vol. 38(2), pages 189-209, June.
    10. Satoła Łukasz, 2017. "Spatial Diversity of Municipal Capital Companies in Poland," Economic and Regional Studies / Studia Ekonomiczne i Regionalne, Sciendo, vol. 10(3), pages 32-41, September.
    11. Catherine Grandclément & Alain Nadaï, 2018. "Devising the consumer of the competitive electricity market: the mundane meter, the unbundling doctrine, and the re-bundling of choice," Post-Print halshs-03329331, HAL.
    12. Chechelski, Piotr & Grochowska, Renata & Łopaciuk, Wiesław & Ślązak, Emil & Wasilewski, Adam & Wigier, Marek, 2012. "Development est public policy support in the food economy – the example of Poland," Multiannual Program Reports 164845, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    13. Atif Ansar & Bent Flyvbjerg & Alexander Budzier & Daniel Lunn, 2016. "Big is Fragile: An Attempt at Theorizing Scale," Papers 1603.01416, arXiv.org, revised Jun 2017.
    14. Aldo Montesano, 2024. "Pareto and pure economics: analyses subsequently accepted and others neglected," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 71(3), pages 537-552, September.
    15. Escudé, Guillermo J., 2021. "La Teoría del Capitalismo de Karl Marx. Exposición, Crítica y Evaluación [Karl Marx's Theory of Capitalism. Exposition, Critique, and Appraisal]," MPRA Paper 105877, University Library of Munich, Germany.
    16. André de Palma & Julien Monardo, 2019. "Natural Monopoly in Transport," Working Papers hal-02121079, HAL.
    17. Kotsios, Panayotis, 2010. "Regulatory Barriers to Entry in Industrial Sectors," MPRA Paper 27976, University Library of Munich, Germany.

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