Most commentators agree that the benefits of competitive electricity markets will materialize only if wholesale prices are allowed to fluctuate more or less freely so as to provide adequate pricing signals to generators. Most also agree, however, that small electricity users need to be protected...

This paper seeks to shed some light both on how economy-wide and infrastructure or sector-specific components of the regulatory framework should be designed and on what the respective roles of such components should be to maximize the efficiency of economic regulation in telecommunications. It...