The political economy of international regulatory convergence in public utilities

J.-P. BONARDI, S. Urbiztondo, B. QUÉLIN

International Journal of Management and Network Economics (IJMNE)

2009, vol. 1, n°2, pp.232 - 256

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: Regulatory convergence, Telecommunications, Unbundling regulations, Political economy, Public utilities, Public utility regulation, Regulation impacts, Local impact.

To what extent should public utilities regulation be expected to converge across countries? When it occurs, will it generate good outcomes? Building on the core proposition of the New Institutional Economics that similar regulations generate different outcomes depending on their fit with the underlying domestic institutions, we develop a simple model and explore its implications by examining the diffusion of local loop unbundling (LLU) regulations. We argue that: one should expect some convergence in public utility regulation but with still a significant degree of local experimentation; this process will have very different impacts of regulation