Core References

• Understanding Regulation: Theory, Strategy, and Practice New York: Oxford University Press, 1999, Chapters 13 and 16. Baldwin, Robert, and Martin Cave

  Explains competition between regulatory agencies and how this competition affects market outcomes. Describes models for coordination. Also explains the choice between monopoly and competition. Considers the factors that determine which market structure may be more desirable and transitions from monopoly to competition.

• Competition Policy for Small Market Economies Cambridge, MA: Harvard University Press, 2003, Chapter 4. Gal, Michal S.

  Explains regulation of monopolies in a small economy context. Defines monopoly and describes approaches to regulating a pure monopoly (a monopoly that does not also compete against other firms) and to regulating a monopoly that competes with downstream rivals. Considers the viability of these downstream rivals.

• Managing the Regulatory Process: Design, Concepts, Issues, and the Latin America and Caribbean Story Washington, D.C.: The World Bank Group, 1999, Chapter 10. Guasch, J. Luis, and Pablo Spiller

  Examines alternative market structures, transfer pricing, private sector access, and the sequencing of reforms.

• Competition in Network Industries – Where and How to Introduce It. Note no. 104 in Public Policy for the Private Sector. Washington, D.C.: World Bank Group, 1997. Klein, Michael, and Philip Gray

  Explains concepts of competition for the market, competition over existing networks, and competition among networks with practical examples. Describes various options for using competition in these sectors, including franchising, open access, pooling, and timetabling. Explains that how network competition is introduced and how effectively and easily it is implemented will vary from one network industry to another. General rules for deciding where and how to introduce competition are discussed.

• Restructuring Public Utilities for Competition Washington, D.C, 2001. OECD

  Provides a systematic review of alternative approaches to promoting competition in public utilities. First discusses the relationship between the market structure of these industries and the likely emergence of competition and emphasizes the problem of access to the natural monopoly segment. Then outlines the pros and cons of various policies that address this issue. Surveys some countries’ experiences in restructuring their public utility sectors.

Sectoral References

ELECTRICITY

• The Arguments For and Against Ownership Unbundling of Energy Transmission Networks ESRC Electricity Policy Research Group, University of Cambridge, 2007. Pollitt, Michael

  Examines models of transmission ownership. Identifies costs and benefits of various approaches using case studies, empirical evidence, and guidance from theoretical models.

• Competition in Electricity Markets Washington, D.C.: International Energy Agency, 2001. OECD/IEA

  Describes the reforms implemented in OECD countries aimed at developing competition in the electricity supply industry and discusses the issue of designing the regulatory framework that would enhance competition. Assesses the emerging model of electricity supply reform and evaluates its relative efficiency. Considers the challenge for electricity market reform and the future outlook for reform.

• Electricity Market Design and Creation in Asia Pacific World Energy Council

  Examines electricity market reform in the Asia Pacific. Considers objectives of reforms and issues of customer choice, stranded assets, attracting investment, maximizing asset value, universal access agreements, integration of the grid, and debt. Describes market design options, including competition to build versus competition to operate generating plants.

GAS

• Regulatory Reform: European Gas Washington, D.C.: International Energy Agency, 2000. OECD/IEA

  Considers the type of regulatory reform approach that is best suited for developing effective competition and increased trade and liquidity in European gas markets. Discusses the current institutional system and makes a case for a deep reform of this system. States that reform should take security of supply as a key issue for this constitutes an important feature of the European gas industry. Assesses the situation and outlook for natural gas demand and supply in Europe.

TELECOMMUNICATIONS

• Analyzing Telecommunications Market Competition: Foundations for Best Practices University of Florida, Department of Economics, PURC Working Paper, 2009. Hauge, Janice and Mark Jamison

  Explains how to identify market boundaries and measure the intensity of competition, with particular attention to telecommunications in developing countries.

• ICT Regulation Toolkit Washington, D.C.: infoDev and the International Telecommunications Union, 2007, Module 2.

  Explains how to identify barriers to entry, define market power and market dominance, and identify essential facilities. Explains remedies for anticompetitive conduct, such as abuse of dominance, restricting access to essential facilities, and engaging in cross-subsidization, predatory pricing, and price squeezes.

• What the Transformation of Telecom Markets Means for Regulation Note no. 121 in Public Policy for the Private Sector. Washington, D.C.: World Bank Group, 1997. Smith, Peter

  Explains that regulators need to set the rules regarding entry (if there are to be such rules), allocate licenses through bidding mechanisms, resolve network interconnection issues, authorize rate rebalancing to better align prices with underlying costs, and better target subsidies and administer them in a way that does not advantage certain operators. State that in many cases, competition through the sale of property rights (such as radio spectrum) can eliminate the need for regulation, and the market can be regulated in a way more in line with antitrust regulation.

TRANSPORTATION

• Liberalization of the Philippine international air transport industry: que pasó? Competition policy is an essential factor for successful liberalization of the airline industry in Philippines Paper provided by Philippine Institute for Development Studies (PIDS), Philippines , 2001. Austria, M.S.

  Analyzes the liberalization and deregulation policy for the international air transport industry in the Philippines. Examines the effects of these policies on competition and market structure, and identifies areas where reforms are needed. Emphasizes the importance of the policy and recommends that competition policy should focus on, among others: (1) market access; (2) access to inputs; and (3) mergers and acquisitions.

• Africa Infrastructure Country Diagnostic: Stuck in Traffic: Urban Transport in Africa Working Paper number 44980, World Bank, Washington, D.C., 2008. World Bank and Sub-Saharan Africa Transportation Project

  Summarizes recent research on urban transport in 14 large African cities. Provides a comprehensive overview of the state of urban transport in Africa, with a view to drawing out the main challenges facing the sector and illustrating the different ways in which these have been addressed.

• Port Reform Toolkit, 2nd Edition Public-Private Infrastructure Advisory Facility, World Bank. World Bank Transport Group

  Provides guidance for undertaking sustainable and well-considered reforms of public institutions that provide, direct, and regulate port services in developing countries.

WATER

• Independent Water and Sanitation Providers in African Cities: Full Report of a Ten-Country Study UNDP-World Bank Water and Sanitation Program. Washington, D.C., World Bank, April 2000. Collignon, Bernard, and Marc Vezina

  Examines role of small and independent water providers (vendors, water truckers and network providers) in providing water to the urban poor in Africa. States that small-scale providers respond to market niches and meet the needs of both the poor and other unserved communities. Explains how such services are provided and funded; the relationships between small-scale providers, local authorities, and larger-scale water providers; and policy issues.

• Competition in Water and Sanitation Note no. 165 in Public Policy for the Private Sector. Washington, D.C.: World Bank Group, December 1998. Solo, T. M.

  Explains that efficient, large-scale, monopolistic companies may be the best alternative in Europe and the United States, but it is hard to replicate such efficiencies in the utility companies of developing countries. States that small-scale operators tend to be customer-driven, financially viable, and ready to apply innovative technologies and marketing methods. They also provide appropriate solutions in appropriate places, assume all investment risks, reach the poor, charge market prices, cover costs, and respect willingness to pay.

• Improving Water Services through Competition Note no. 164 in Public Policy for the Private Sector. Washington, D.C.: World Bank Group, December 1998. Webb, M., and Ehrhardt, D.

  Describes four means of introducing product market competition: competing networks, private supply, retail competition, and common carriage competition. Explains that to promote competition, governments may have to develop an efficient bulk supply or network access regime. Concludes that the most important part of such a regime is the price of bulk supply or network access. Considers differences in water quality and how they affect common carriage arrangements. Concludes that the case for common carriage competition in water is less compelling than in other industries.

Other

• The Economics of Urban Water Systems in Thirsting for Efficiency, edited by Mary M. Shirley. Washington, D.C.: The World Bank, 2002, pp.43-63. Noll, Roger G.

  Examines prospects for reform in developing countries and conditions that lead to reform.