The Review of Economics and Statistics Vol. 69 No. 3 1987
Are Combination Gas and Electric Utilities Multiproduct Natural Monopolies?
Abstract
Gas and electric services are provided in some locations by a single firm, in others by two firms. The loss of competition inherent in single-firm provision can be justified by the presence of both economies of scope and product-specific economies of scale for each output in multiproduct production. The estimation of a multiproduct, hybrid, translog cost function shows no evidence of such economies at the mean combination utility output vector.
- DOI
- 10.2307/1925526
- Volume
- 69
- Issue
- 3
- Pages
- 392
- Sources
- crossref openalex