International Encyclopedia of Transportation 2021
DOI: 10.1016/b978-0-08-102671-7.10006-5
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Natural Monopoly in Transport

Abstract: Transportation networks, such as railways, roads and highways provide standard examples of natural monopolies. Since the introduction of the term "natural monopoly" by T. Malthus in 1815, this concept has been defined in different ways by several authors (F. Bastiat, J. S. Mill or L. Walras). The current formal definition is due to Baumol (1977) and is based on the subadditivity of the cost functions. After estimating the cost functions, the researcher can test whether subadditive holds or not. Natural monopol… Show more

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Cited by 3 publications
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“…organization when the market for its services was in a state of monopoly [3]. Within individual states, the main transporta tion of goods and passengers, as well as the operation of the infrastructure of public railways, was carried out either by a vertically integrated company or a group of centrally con trolled enterprises.…”
Section: Information Technologies Systems Analysis and Administrationmentioning
confidence: 99%
“…organization when the market for its services was in a state of monopoly [3]. Within individual states, the main transporta tion of goods and passengers, as well as the operation of the infrastructure of public railways, was carried out either by a vertically integrated company or a group of centrally con trolled enterprises.…”
Section: Information Technologies Systems Analysis and Administrationmentioning
confidence: 99%