Ex post regulation as method of the public policy in the regulated sectors

Rafał Nagaj, Brigita Žuromskaitė


The paper is a theoretical and empirical study addressing the issues of ex post regulation as a method of public policy to control selected sectors of the economy where market failures exist. The aim of the article is to explain the essence of ex post regulation, its types, advantages and disadvantages. This article will focus on the critical analysis of professional literature and the case study of the experiences of states that have applied this type of policy to the infrastructure sectors. Theoretical and empirical analysis indicates that it is not everywhere possible to apply this kind of state intervention. Such public policy requires the creation of some boundary conditions, such as restructuring or liberalization processes to ensure that competition mechanisms are so deeply rooted that its application will be effective and companies will not abuse their market position in relation to the consumer.


ex post regulation, sectoral regulation, public policy, regulated sectors

Full Text:



Baldwin, R., Scott L. and Hood C. Introduction. In: R. Baldwin, L. Scott and C. Hood (eds.). A Reader on Regulations. Oxford: Oxford University Press, 1998, 1–55.

Biggar, D. Is Protecting Sunk Investments by Consumers a Key Rationale for Natural Monopoly Regulation?. Review of Network Economics, 2009, Vol. 8, Issue 2, 128-152.

Black, D., Harman, G. and Moselle, B. The Case for Ex Post Regulation of Energy Networks. Final. London: LECG, 2009. www.ofgem.gov.uk/Networks/rpix20/ConsultReports/ Documents1/Final%20report%20ex%20post%20regulation.pdf [2017-07-30].

Boyer, R. and Saillard, Y. A summary of regulation theory. In: R. Boyer and Y. Saillard (eds.). Regulation Theory: The state of the art. London & New York: Routledge, Taylor and Francis Group, 2000, 36–44.

Bundesnetzagentur and Bundeskartellamt. Monitoringreport 2013. Bonn: Bundesnetzagentur, 2014.

Cemil Ozbugday, F. and Nillesen, P.H.L. Efficiency and prices of regulation-exempt consumer-owned natural monopolies: A first look at Electricity Distributors in New Zealand. Annals of Public and Cooperative Economics, December 2013, Vol. 84, No. 4, 361-381.

Downs, A.. An Economic Theory of Democracy, New York: Pearson, 1997.

EMA. Helsinki: Annual Report of Energy Market Authority 2003. 2003.

EMA. Helsinki: Annual Report 2007 to the European Commission: Finland, 2007.

Gunning, J.P.. Understanding Democracy: An Introduction to Public Choice, Taipej, Taiwan: Nomad Press, 2003.

Jordana, J. and Levi-Faur, D. The Politics of Regulation in the Age of Governance. In: J. Jordana and D. Levi-Faur (eds.). The Politics of Regulation: Institutions and Regulatory Reforms for the Age of Governance. Cheltenham: Edward Elgar Publishing, 2000, 1–28.

Joskow, P.L. and Noll, P.C. Regulation in Theory and Practice: An Overview. In: G. Fromm (eds.). Studies in Public Regulation. Cambridge, Massachusetts: The MIT Press, 1981, 1–66.

Kahn, A.E. The Economics of Regulation: Principles and Institutions (Vol. I). Cambridge, Massachusetts, London: The MIT Press, 1998.

Nagaj, R.. Przesłanki regulacji rynków w świetle teorii wyboru publicznego (Reasons for market regulation in light of public choice theory). Studia i Prace Wydziału Nauk Ekonomicznych i Zarządzania, 2012, Nr 27, 155-168.

Nagaj, R.. Regulacja rynku energii elektrycznej w Polsce – ex ante czy ex post (Regulation of the electricity market in Poland – ex ante or ex post). Szczecin: Wydawnictwo Naukowe Uniwersytetu Szczecińskiego, 2016.

Niskanen, W.A. Bureaucracy and Public Economics. Aldershot, Brookfield: The Locke Institute, E. Elgar, 1994.

Nussim, J., Tabbach, A.D. Controlling Avoidance: Ex Ante Regulation Versus Ex Post Punishment. Review of Law and Economics, 2008, Vol. 4, No. 1, 45-63.

Ogus, A.L. Regulation: Legal Form and Economic Theory. Oxford: Hart Publishing, 2004.

Peltzman S. Toward a More General Theory of Regulation. The Journal of Law and Economics, 1976, Vol.

, No. 2, 211–240.

Pigou, A.C. The Economics of Welfare. (2013 Edition). London: Palgrave Macmillan, 2013.

Posner, R.A. Theories of Economic Regulation. The Bell Journal of Economics and Management Science, 1974, Vol. 5, No. 2, 335–358.

Schroder, M. and Voelzkow, H. Varieties of Regulation: How to Combine Sectoral, Regional and National Levels. Regional Studies, 2016, Vol. 50, No. 1, 7–19, http://dx.doi.org/10.1080/00343404.2014.904040.

Shepherd, W.G. and Wilcox C. Public Policies Toward Business. R.D. Irwin, 1979.

Sims, R. Ports: What measure of regulation. Ports Australia Conference, 20.10.2016, Melbourne: ACCC, 2016. http://www.portsaustralia.com.au/assets/Uploads/Sims-Rod-Ports-What-measure-of-regulation-Oct-2016.pdf [2016-08-04].

Spiegel, U., Ben-Zion, U., Tavor, T. and Templeman, J. The Network Industry, Monopoly Regulation, and Social Optimum. International Journal of the Economics of Business, 2008, Vol. 15, No. 3, 323–337.

Stigler, G.J. The Theory of Economic Regulation. The Bell Journal of Economics and Management Science, 1971, Vol. 2, No. 1, 3–21.

Szkudlarek, P. Państwo w procesie rozwoju rynku usług telekomunikacyjnych w Polsce (The state in proces of development in telecommunication services market in Poland). In: W. Jarecki (eds.). Konkurencyjność podmiotów gospodarczych w Polsce. Szczecin: Wydawnictwo Naukowe Uniwersytetu Szczecińskiego, 2012.

Tollison, R.D. The economic theory of rent seeking. Public Choice, 2012, Vol. 152, No. 1/2, 73-82.

DOI: https://doi.org/10.13165/VPA-17-16-4-02


  • There are currently no refbacks.

"Public Policy and Administration" ISSN online 2029-2872 / ISSN print 1648-2603