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The Unsustainable Costs of Partial Deregulation (Hardcover)
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The Unsustainable Costs of Partial Deregulation (Hardcover)
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Three decades ago, federal policymakers--Republicans and
Democrats--embarked on a general strategy of deregulation. In the
electricity, gas delivery, and telecommunications industries, the
strategy called for restructuring to separate production from
transmission and distribution, followed by elimination of price
controls. The expected results were lower prices and increased
quality, reliability, and scope of services. Paul W. MacAvoy, an
economist with forty years of experience in the regulatory field,
here assesses the results and concludes that deregulation has
failed to achieve any of these goals in any of these
industries.
MacAvoy shows that we now have only "partial" deregulation, a
mixture of oligopoly structure with direct price control. He
explores why this system leads to volatile and high prices, reduced
investment, and low profitability, and what policy actions can be
implemented to address these problems.
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