Public Utilities: Privatization without Regulation
|Title:||Public Utilities: Privatization without Regulation|
|Journal or Publication Title:|
AUCO Czech Economic Review, 4, 1, pp. 62-79
|Uncontrolled Keywords:||Privatization, public utilities, dynamic programming|
In the last decades, transitional countries of Central and Eastern Europe have engaged in strong privatization programs of public utilities. However, a large part of them did not meet legal and economic conditions needed for a market economy to take place. In this paper, we study how a firm producing a public utility and moving from a public ownership to privatization and thus adopting a profit-maximizing criterion defines its production plans, when an appropriate regulatory environment is still lacking.