Price Effects of Regulation: Telecommunications, Air Passenger Transport and Electricity Supply

Abstract

Price Effects of Regulation draws on research undertaken at the OECD to quantify the effects of domestic regulatory regimes on prices in up to 50 economies for 3 sectors - international air passenger transport, telecommunications and electricity supply. The study finds wide variations in regulatory regimes across economies for each sector. The results suggest a positive relationship between the stringency of regulatory regimes and higher prices in each sector. For example, the bilateral system of restrictions on the number of air passenger flights between countries and the conditions under which they operate are estimated to collectively increase airfares by between 3 and 22 per cent.

Keywords: regulation - price effects - telecommunications - air transport - airlines - electricity - trade restrictions

JEL Classification: Z