Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Friday, July 10, 2020

Competition For-the-Market Liquefied Petroleum Gas Market Regulation in Ecuador

Competition For-the-Market Liquefied Petroleum Gas Market Regulation in Ecuador

Patricio Pozo Vintimilla

Universidad Andina Simón Bolívar

Pablo Carrasco Torrontegui

Universidad de las Américas UDLA

Date Written: 2019

Abstract

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.

https://lawprofessors.typepad.com/antitrustprof_blog/2020/07/competition-for-the-market-liquefied-petroleum-gas-market-regulation-in-ecuador.html

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