Excerpt from an article called
The Myth of Natural Monopoly
The Natural-Monopoly Myth: Electric Utilities
According to natural-monopoly theory, competition cannot persist in the electric-utility industry. But the theory is contradicted by the fact that competition has in fact persisted for decades in dozens of US cities. Economist Walter J. Primeaux has studied electric utility competition for more than 20 years. In his 1986 book, Direct Utility Competition: The Natural Monopoly Myth, he concludes that in those cities where there is direct competition in the electric utility industries:
--Direct rivalry between two competing firms has existed for very long periods of time — for over 80 years in some cities;
--The rival electric utilities compete vigorously through prices and services;
--Customers have gained substantial benefits from the competition, compared to cities were there are electric utility monopolies;
--Contrary to natural-monopoly theory, costs are actually lower where there are two firms operating;
--Contrary to natural-monopoly theory, there is no more excess capacity under competition than under monopoly in the electric utility industry;
--The theory of natural monopoly fails on every count: competition exists, price wars are not "serious," there is better consumer service and lower prices with competition, competition persists for very long periods of time, and consumers themselves prefer competition to regulated monopoly; and
--Any consumer satisfaction problems caused by dual power lines are considered by consumers to be less significant than the benefits from competition.42
https://mises.org/library/myth-natural-monopoly
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