ABSTRACT
In 1970s, most network industries and many non-network industries where the subject of wide-ranging industry specific economic regulation and, in many countries, were state-owned monopolies. The extent to which regulatory changes, including those involving ownership, have led to a move towards more competitive environments for network industries depends to a significant degree on the perceived nature of the underlying market. Network industries, which include most transport modes and information systems, have enjoyed a long tradition of economic regulation. Regulatory and privatization changes have occurred for a variety of reasons. At the political level there has been a general move away from ‘big government’ and with it state control and ownership of industry. The experiences to-date indicate that deregulation and privatization have generally enhanced the operation of market forces. The key policy conclusion of core theory is that in the presence of an empty core there are benefits for both suppliers and users in forming coalitions and in cooperative action.
