Friday, July 10, 2020
Date Written: 2019
Within “for the market” cases, on which an economic operator gets the totality of the market, we find natural monopolies in which, because of the economies of scale within the specific market, it is more efficient for a lone operator to offer the good or service instead of several operators. This market structure establishes challenges for the competition agencies regarding regulation.
This article contains three sections, the first one refers to the definition and characteristics of natural monopolies which allows the understanding of the causes and difficulties for the entrance of new operators in this kind of markets. The second section focuses on the structure and economic policy of the liquefied petroleum gas (GLP) in Ecuador. The third section will expose the problems and challenges that the Superintendency for Market Power Control faces when analyzing natural monopolies.