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Third-party Access
Third party access policies require owners of natural monopoly infrastructure facilities to grant access to those facilities to parties other than their own customers, usually competitors in the provision of the relevant services, on commercial terms comparable to those that would apply in a competitive market. Australia Third party access policies play an important role in Australia's National Competition Policy, and are applied to "essential infrastructure which cannot be economically duplicated", including gas networks, electricity transmission and distribution grids, water transportation and sewerage networks, telecommunications networks, rail networks, ports, and airports. One complication in Australia is that water is generally retailed at "postage stamp" or statewide prices for social equity reasons, to ensure that rural, regional, and remote customers do not pay more than urban customers for their water. Under these prices, low-volume, high-cost remote customers cross-subs ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Natural Monopoly
A natural monopoly is a monopoly in an industry in which high infrastructural costs and other barriers to entry relative to the size of the market give the largest supplier in an industry, often the first supplier in a market, an overwhelming advantage over potential competitors. Specifically, an industry is a natural monopoly if the total cost of one firm, producing the total output, is lower than the total cost of two or more firms producing the entire production. In that case, it is very probable that a company (monopoly) or minimal number of companies (oligopoly) will form, providing all or most relevant products and/or services. This frequently occurs in industries where capital costs predominate, creating large economies of scale about the size of the market; examples include Public utility, public utilities such as water services, Electric power industry, electricity, Telecommunications industry, telecommunications, mail, etc. Natural monopolies were recognized as potenti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Perfect Competition
In economics, specifically general equilibrium theory, a perfect market, also known as an atomistic market, is defined by several idealizing conditions, collectively called perfect competition, or atomistic competition. In theoretical models where conditions of perfect competition hold, it has been demonstrated that a market will reach an equilibrium in which the quantity supplied for every product or service, including labor, equals the quantity demanded at the current price. This equilibrium would be a Pareto optimum. Perfect competition provides both allocative efficiency and productive efficiency: * Such markets are ''allocatively efficient'', as output will always occur where marginal cost is equal to average revenue i.e. price (MC = AR). In perfect competition, any profit-maximizing producer faces a market price equal to its marginal cost (P = MC). This implies that a factor's price equals the factor's marginal revenue product. It allows for derivation of the s ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
National Competition Policy (Australia)
The term National Competition Policy refers to a set of policies introduced in Australia in the 1990s with the aim of promoting microeconomic reform. Origins In 1992, an independent committee of inquiry, the National Competition Policy Review Committee, was established by Prime Minister of Australia, Prime Minister Paul Keating to inquire into and advise on appropriate changes to legislation and other measures in relation to the scope of the Trade Practices Act 1974 and the application of the principles of competition policy. The Committee was chaired by Fred Hilmer and also comprised Geoffrey Tapperall and Mark Rayner. The report was commissioned against a backdrop of major microeconomic reforms led by the Keating Government, but slow progress on areas of the economy sheltered from competition as a result of constitutional limits on the application of the Federal Trade Practices Act or of other actions by Federal or state governments. The report thus had important implications fo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Internal Market In Electricity Directive
Internal Market in Electricity Directive is the Directive 2003/54/EC of the European Parliament and the Council of 26 June 2003 concerning common rules for the internal market in electricity and repealing Directive 96/92/EC is based in the Treaty establishing the European Community, and in particular Article 47(2), Article 55 and Article 95 thereof. Important: Directive2003/54/EC has been replaced by Directive2009/72/EC and then by Directive2019/994. Directive 96/92/EC of the European Parliament and of the Council of 19 December 1996 concerning common rules for the internal market in electricity, has made significant contributions towards the creation of an internal market for electricity. Experience in implementing this Directive shows the benefits that may result from the internal market in electricity, in terms of efficiency gains, price reductions, higher standards of service and increased competitiveness. However, important shortcomings and possibilities for improving t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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