Privatization: A Theoretical Treatment

In the United Kingdom, some of the most important public utilities such as telecommunications, gas, and electricity have recently been privatized. Following unification, Germany is privatizing an entire economy. This book examines privatization, not previously subjected to rigorous economic analysis, providing a comprehensive and thorough survey of arguments both for and against it. The author discusses both positive and welfare-economic approaches dealing with the complex transitional problems moving from public to private ownership. He also examines central issues of privatization—why efficiency increases can be expected as a result of privatization, whether full privatization coupled with subsequent regulation is better than partial privatization with the government regulating from within the firm. He also looks at the role of trade unions in the privatization process.