Richard Epstein’s Financial Times article on Wednesday lays out some problems that arise when you try to change the regulatory approach in a network industry in which technological change happens. He’s discussing telecom and the “deregulation” in the 1996 legislation, but as Keith at Liberty Lover points out, Epstein’s analysis has important insights for electricity … More Richard Epstein On Regulatory Transition … More Richard Epstein On Regulatory Transition
CMS Energy won’t issue dividends in 2003 in an attempt to improve its liquidity, American Electric Power declared a 4th quarter loss and will cut jobs and investment, and these developments led other utility stocks lower this morning. This is the continuing fallout from the collapse of the energy trading sector of the industry, and … More Losses Continue In The Electricity Industry … More Losses Continue In The Electricity Industry
One of the most important dynamics in market processes is how high prices induce suppliers to either enter the market or, if they’re already in the market, to invest in expanding their production capacity to capture the profits available due to higher prices. In the current environment with high and volatile oil prices, you’d expect … More A Rough Measure Of Increased Prices Inducing Entry … More A Rough Measure Of Increased Prices Inducing Entry
I’ve got a review of Joel Mokyr’s The Gifts of Athena on Tech Central Station today. Read the review, read the book. … More Athena’s Gift
Is the strike almost over? Is Chavez going to prevail? Apparently Chavez has fired 3,000 oil company (PDVSa) executives, but Chavez opponents are meeting with officials from other Latin American countries and the US to see if they can persuade an international coalition to work on their behalf. The resumption of tanker shipments this week … More Venezuela Resolution? … More Venezuela Resolution?
BRRRRR chilly! It’s a good day to work at home, swaddled in polarfleece and homemade alpaca socks. Bonne Marie Burns at ChicKnits certainly knows how to approach a Chicago cold spell. For her the tough wear mohair, for me the tough wear alpaca (and high-tech soft goods made of Gore windstopper fleece). And drink lots … More It’s Cold out There!