The Logic of Natural Monopoly Regulation

The authors explain why the elementary logic of rate-of-return regulation generates not the competitive outcome but the monopoly outcome. Within the framework of the "passive regulator" that this logic entails, public regulation cannot alter the monopoly outcome, but can only change the form in which the monopoly rent is captured. The authors also explain why it is essentially no different even if the regulator is an "active regulator," who does not passively allow as costs all that the monopolist declares to be costs.Monopoly; Regulation

The constitutional dilemma of European integration

The paper analyzes European integration from a constitutional economics perspective. It is argued that the use of the Prisoners' Dilemma as a description of the advantages of European integration is fallacious. If the situation is a PD, the solution is impossible; if it is not, it is unnecessary