Water and asymmetric information

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Why is it so hard to regulate private water companies effectively?  This video presents some general conundrums of regulation.

 

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A: there's no difference between corrupt private and corrupt public. Private can do better with profit incentive and imported ideas; public can do better with long run customer service. Both need good oversight to avoid corruption. So watch the REGULATORS :)

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Alex, you got some good points but there are real advantages, I lived under both systems and on your questions I can comment:
a) The monopoly remains the same: that is true, are natural monopoly, there makes no sense to run several systemas in parallel
b) Prices dictated by political decision, not true, at least in countries where the private system do it well, as in Chile, prices are calculated, with a polynomial based in an fictitious company with market results comparable to a group of some of the most efficients in the world. The calculation is made public and available for anyone scrutiny. If government privatize and then calculate arbitrarily prices (as it happened in Bolivia and Argentina at a certain degree) certainly makes no big difference.
c) There are strong incentives too improve, one is psychological (or sociological): being private companies are under strict public scrutiny, the concession must be renovated every certain years and the companies must work hard to ensure that customers are happy with quality of service, they are accountable, Government officers are NOT

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