natural monopoly


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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 ?
Also during the discussion, a list of federal infrastructure facilities was drawn up, the construction or reconstruction of which is envisaged by territorial planning schemes, state programs, federal target programs, and investment programs of natural monopoly entities.
Finally, PR has the status of a natural monopoly, ie.
GGU is a privately-owned company, which benefits from a natural monopoly that supplies water and provides wastewater services through its wholly owned subsidiaries to 1.
Because natural gas distribution requires extensive infrastructure investment, it is a natural monopoly that is regulated to ensure that customers can purchase the gas at a fair price while providing utility investors with adequate returns.
Whatever the merits of treating electricity as a natural monopoly in the past, jurisdictions like Texas have shown that model is, at best, no longer necessary.
Natural monopoly is an economic threat that the US simply hasn't had to cope with very much in the past, and policymakers don't have good counter measures available.
A natural monopoly occurs when (1) there are significant barriers
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.
According to Gatchalian, the SSS being a natural monopoly was a factor in the dismal service that the agency has been providing for years to its members.
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.