Regulatory pricing mechanism in the context of privatization of Delhi and Mumbai airports : double down or pivot /
Most infrastructure investments were considered natural monopolies given their heavy and concentrated initial investment, regulated tariffs and high gestation period. However, beginning with the turn of the last century, policymakers devised mechanisms to make investment in such assets an attractive...
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| Format: | eBook |
| Language: | English |
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London :
Indian Institute of Management, Kozhikode,
2022.
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| Series: | SAGE business cases.
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| Subjects: | |
| Online Access: | Connect to the full text of this electronic book |
| Summary: | Most infrastructure investments were considered natural monopolies given their heavy and concentrated initial investment, regulated tariffs and high gestation period. However, beginning with the turn of the last century, policymakers devised mechanisms to make investment in such assets an attractive proposition for the private sector. Private sector participation enhanced the resources and capabilities to develop and run infrastructure projects. At the same time, there were fears of misuse of market power by private players, which would be detrimental to the welfare of users. At this juncture, it is essential to align the private entrepreneur's focus on profits and the welfare of users. Thus, regulators have to monitor the quality and scope of services and the pricing of service. Prior experience of intense monitoring by the regulator has shown that intrusive regulations suffer from idiosyncrasies, corruption etc., and create distortions that are worse than the abuse of market power. Hence, regulations need to be objective with minimum human discretion. |
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| Physical Description: | 1 online resource. |
| ISBN: | 9781529620702 1529620708 |