natural monopoly


Also found in: Financial, Wikipedia.

natural monopoly

A monopoly that develops because of the unique nature of a business. For example, water supply is often regarded as a natural monopoly because it would be prohibitively expensive and wasteful to build competing distribution infrastructure.
References in periodicals archive ?
Sepp and Eerma (2011) describe economic policy choices and developments in a bundle of Estonian industries that exhibit natural monopoly characteristics or universal service obligations, and Sepp and Ernits (2012) address liberalisation and promotion of competition in postal sector.
As a natural monopoly the efficient regulation of water can both boost productivity and ease cost of living pressures," he said.
As a natural monopoly the water industry is heavily regulated with all of its price limits, investment plans and outputs set by Ofwat on a five-year cycle.
For example, topics such as barriers to entry, natural monopoly, and potential competition in pricing are illustrated through a discussion of why cable television rates are so high.
On the termination market, each operator has a natural monopoly and this is why we must regulate these rates.
Offers on tariffs indexation of natural monopoly in 2014-2016 will be prepared until 1 July 2013.
That was in 1992 and it was indeed to take the National Grid, privatised in 1990, back into public ownership as a natural monopoly.
209) All the key essential facilities doctrine cases dealt with facilities that had natural monopoly characteristics or were part of a critical network.
During the 1980s and 1990s, regulations focused primarily on mandating access to the portions of the local telephone network that still represented a natural monopoly.
With the new price and silenced approval of using the natural monopoly, the regulators definitely took care "Toplifikacija" not to be damaged in any way.
problems usually seen as justifying rate regulation is natural monopoly.
He said that Railways serves poor Pakistanis in areas where no other forms of transportation are available and therefore should maintain its status as a natural monopoly.