Abstract
Our modern information industries are either network industries or share many essential economic features with tradition network industries such as electrical, transportation, communications, information, and railroad industries. There is potentially much that academics in information technology can learn from the study of industrial and market structure in traditional network industries This case takes an in-depth look at the industry structure and price system innovations that were pioneered in Chile in the 1970s and 1980s. These innovations have served as models for many other systems in Europe, Latin America and Asia.Chile in the 1970s faced a specific challenge - the migration of the State electrical generation and distribution monopoly to a free-market setting. The problem is similar to the challenge faced today in China, where State-owned enterprises in telecommunications, Internet, and wireless are being privatized. Chile successfully migrated their electrical industry in three years, in large part due to a rational pricing system that was part free-market and part State regulation. Their success serves as a model for the design of rational pricing and industry structures for information networks.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call