The Theory of Natural Monopoly

William W. Sharkey

doi:10.1017/CBO9780511571817

The theory of natural monopoly has been substantially transformed in previous years. Ina clear and straightforward style, Dr. Sharkey gives an integrated presentation of the modern approach to this subject. Although the book is mainly conceptual in nature, the final chapter on natural monopoly in the telecommunications industry shows the practical applications of the theory. After an historical survey of natural monopoly, there follows a chapter stating and explaining the main results as well as giving a preliminary overview of the rest of the book, where concepts such as the subadditivity of costs, optimal pricing, sustainability, and destructive competition are presented. The essence of the subject is presented in a manner accessible to the general reader, though the book also provides a synthesis of the subject suitable for advanced students.

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The Theory of Natural Monopoly

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Contents

Frontmatter
pp i-iv

Contents
pp v-vi

Preface
pp vii-viii

1 - Introduction and overview
pp 1-11

2 - Historical survey of natural monopoly
pp 12-28

3 - Natural monopoly and economic theory: some basic results
pp 29-53

4 - Natural monopoly and subadditivity of costs
pp 54-83

5 - Sustainability of natural monopoly
pp 84-110

6 - A game theoretic analysis of destructive competition
pp 111-144

7 - Competition in natural monopoly and natural oligopoly markets
pp 145-164

8 - Noncooperative equilibria in a contestable market
pp 165-180

9 - Natural monopoly and the telecommunications industry
pp 181-213

References
pp 214-222

Index
pp 223-229

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