Deregulation Process, Governance Structures and Efficiency: The U.S. Electric Utility Sector

Topics:
Electrical and Electronic,
Wholesale
Tags:
Business Strategy Literature,
Deregulation,
Government,
Regulations
Source:
University of California, Santa Barbara

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Overview: This paper is an empirical assessment of the comparative efficiency of governance structures in an environment marked by high uncertainty. This paper analyzes the short-term impact of retail deregulation on the productive efficiency of electric utilities in the United States. It also argues that there are transitory costs linked to the process of deregulation. The business strategy literature suggests different governance structures to cope with uncertainty linked to changing regulatory environments. Transaction cost economics suggests that firms may reduce their exposure to the uncertainty created by the process of deregulation by adopting vertical integration strategies.

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Format: PDF | Size: 317KB | Date: Mar 2003 | Pages: 35

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