+7 925 966 4690, 9am6pm (GMT+3), Monday – Friday
Russian version 

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
Economic Analysis: Theory and Practice
 

Assessment of infrastructure technology parameters in conditions of reforming the State regulation of Russian natural monopolies

Vol. 19, Iss. 4, APRIL 2020

PDF  Article PDF Version

Received: 19 February 2020

Received in revised form: 28 February 2020

Accepted: 16 March 2020

Available online: 28 April 2020

Subject Heading: THEORY OF ECONOMIC ANALYSIS

JEL Classification: 18, 61, L12

Pages: 663682

https://doi.org/10.24891/ea.19.4.663

Belousova N.I. Federal Research Center Informatics and Management, Russian Academy of Sciences, Moscow, Russian Federation
belousova@isa.ru

https://orcid.org/0000-0001-5075-6787

Bushanskii S.P. Central Economics and Mathematics Institute (CEMI), Russian Academy of Sciences, Moscow, Russian Federation
dbd-s@yandex.ru

ORCID id: not available

Vasil'eva E.M. Federal Research Center Informatics and Management, Russian Academy of Sciences, Moscow, Russian Federation
vasileva@isa.ru

ORCID id: not available

Subject. The article deals with network infrastructure modeling to assess its natural monopoly properties and analyze possibilities for incorporating the potential of theoretical and applied model justification into management procedures under reform of government regulation of Russian natural monopolies.
Objectives. The aim is to elaborate methodological guidelines for assessment of infrastructure technology parameters, taking into account network specifics and proposed changes in Russian legislation in the sphere of natural monopolies and incorporating a number of theoretical and applied models.
Methods. We apply our own approach to modeling more adequate assessments of network infrastructure technology parameters, and a methodology for diagnostics of natural monopoly properties of infrastructure technologies given the uncertainty of source information.
Results. The study formulates methodological guidelines for diagnostics of natural monopoly properties based on modeling the parameters of network infrastructure technology. We analyzed the situation resulting from structural reforms of Russian natural monopolies, presented some results of experimental model calculations with estimated impact of investment component of total cost on economic characteristics of infrastructure technologies. Furthermore, we obtained analytical assessments for different scenarios of network technology development.
Conclusions. The proposed methodological guidelines for modeling the parameters of network infrastructure technology may serve as a basis of the system of interdisciplinary justifications for reforming the government regulation of Russian natural monopolies with increased emphasis on network component.

Keywords: natural monopoly, legislative initiative, network infrastructure technology, diagnostics of properties, generation of unobservable data

References:

  1. Baumol W.L., Panzar J.C., Willig R.D. Contestable Markets and the Theory of Industry Structure. New York, Harcourt Brace Jovanovich, 1982, 497 p. URL: Link
  2. Belousova N.I., Bushansky S.P., Livchits V.N., Vasilieva E.M. Modern Approaches to Natural Monopoly Identification and Regulation under Russian Economic Reform. In: A. Tavridze (ed.) Progress in Economic Research. Vol. 32. N.Y., Nova Science Publishers, 2015, pp. 3965.
  3. Belousova N.I., Vasil'eva E.M. [Diagnostics on characteristics of network infrastructure technology under modification of Russian natural monopoly State regulation]. Rossiiskii ekonomicheskii zhurnal = Russian Economic Journal, 2019, no. 3, pp. 2535. (In Russ.)
  4. Wang Chiang S.J., Friedlaender A.F. Output Aggregation, Network Effects, and the Measuring of Trucking Technology. The Review of Economics and Statistics, 1984, vol. 66, iss. 2, pp. 267276. URL: Link
  5. Levit B.Yu., Livshits V.N. Nelineinye setevye transportnye zadachi [Non-linear network transport problems]. Moscow, Transport Publ., 1972, 144 p.
  6. Gasmi F., Laffont J.J., Sharkey W.W. The Natural Monopoly Test Reconsidered: An Engineering Process-Based Approach to Empirical Analysis in Telecommunications. International Journal of Industrial Organization, 2002, vol. 20, iss. 4, pp. 435459. URL: Link00103-X
  7. Caves D.W., Christensen L.R., Tretheway M.W. Economies of Density versus Economies of Scale. Why Trunk and Local Service Airline Costs Differ. The RAND Journal of Economics, 1984, vol. 15, iss. 4, pp. 471489. URL: Link
  8. Belousova N.I., Bushanskii S.P., Vasil'eva E.M., Vasil'ev V.B. [Natural monopoly properties of transport networks: Multiproduct diagnostic models]. Audit i finansovyi analiz = Audit and Financial Analysis, 2018, iss. 2, pp. 129147. (In Russ.)
  9. Roller L.-H. Proper Quadratic Cost Functions with an Applications to the Bell System. The Review of Economics and Statistics, 1990, vol. 72, no. 2, pp. 202210. URL: Link
  10. Pulley L.B., Braunstein Y.M. A Composite Cost Function for Multiproduct Firms with an Application to Economies of Scope in Banking. The Review of Economics and Statistics, 1992, vol. 74, iss. 2, pp. 221230. URL: Link
  11. Spady R.H., Friedlaender A.F. Hedonic Cost Functions for the Regulated Trucking Industry. The Bell Journal of Economics, 1978, vol. 9, iss. 1, pp. 159179. URL: Link
  12. Samset K., Volden G.H. Front-End Definition of Projects: Ten Paradoxes and Some Reflections Regarding Project Management and Project Governance. International Journal of Project Management, 2016, vol. 34, iss. 2, pp. 297313. URL: Link
  13. Flyvbjerg B., Bruzelius N., Rothengatter W. Megaproekty i riski. Anatomiya ambitsii [Megaprojects and Risk: An Anatomy of Ambition]. Moscow, Al'pina Pablisher Publ., 2014, 288 p.
  14. Kraskovskii A., Yakovlev P. [Transformation of the management system: A goal or means of reforming the railway transport?]. Vektor transporta = Transport Vector, 2015, no. 3, pp. 3035. URL: Link (In Russ.)
  15. Khusainov F.I. Reforma zheleznodorozhnoi otrasli v Rossii: problemy nezavershennoi liberalizatsii [Reform of the railway industry in Russia: Problems of incomplete liberalization]. Moscow, Nauka Publ., 2015, 272 p.
  16. Vickerman R. Wider Impacts of Megaprojects: Curse or Cure? In: B. Flyvbjerg (ed.) The Oxford Handbook of Megaproject Management. Oxford, Oxford University Press, 2017, pp. 389405. URL: Link
  17. Idrisov G.I., Ponomareva E.A. Analiz effektivnosti raboty estestvennykh monopolii v Rossii [Analyzing the Efficiency of Natural Monopolies in Russia]. Moscow, RANEPA Publ., 2016, 80 p.
  18. Pozamantir E.I. Vychislimoe obshchee ravnovesie ekonomiki i transporta. Transport v dinamicheskom mezhotraslevom balanse [Computable general equilibrium of economy and transport. Transport in a dynamic input-output model]. Moscow, Poli Print Servis Publ., 2014, 280 p.
  19. Swan P.F., Belzer M.H. Empirical Evidence of Toll Road Traffic Diversion and Implications for Highway Infrastructure Privatization. Public Works Management & Policy, 2010, vol. 14, iss. 4, pp. 351373. URL: Link
  20. Avdasheva S.B., Orlova Yu.A. [The effects of reforms of tariff regulation of natural monopolies: The experience of Russian power grid companies]. Energeticheskaya politika = Energy Policy, 2014, no. 4, pp. 1221. (In Russ.)
  21. Averch H., Johnson L.L. Behavior of the Firm under Regulatory Constraints. The American Economic Review, 1962, vol. 52, iss. 5, pp. 10531059.
  22. Boyce D., Xiong Q. User-Optimal and System-Optimal Route Choices for a Large Road Network. Review of Network Economics, 2004, vol. 3, iss. 4, pp. 371380. URL: Link
  23. Livshits V.N., Volodina E.E. [On Flood Algorithm for Approximate Solution of Smooth Nonlinear Programming Problems with Linear Constraints of Large Dimension]. Ekonomika i matematicheskie metody = Economics and Mathematical Methods, 2019, vol. 55, iss. 4, pp. 7888. (In Russ.) URL: Link

View all articles of issue

 

ISSN 2311-8725 (Online)
ISSN 2073-039X (Print)

Journal current issue

Vol. 23, Iss. 3
March 2024

Archive