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David M. Newbery

David M. Newbery is Director of the Department of Applied Economics at Cambridge University. He has been an advisor to the electricity, gas, and rail regulators in various countries.

Titles by This Author

Network utilities, such as electricity, telephones, and gas, are public utilities that require a fixed network to deliver their services. Because consumers have no choice of network, they risk exploitation by network owners. Once invested, however, a network's capital is sunk, and the bargaining advantage shifts from investor to consumer. The investor, fearing expropriation, may be reluctant to invest. The tension between consumer and investor can be side-stepped by state ownership.