This report develops a roadmap for reliability policy in network industries. Based on economic
theory, we analyse the relationship between reliability and various types of government policy:
privatisation, liberalisation, regulation, unbundling, and `commitment policy¿. We let
government policy depend on (1) the feasibility of competition between networks, (2)
contractibility of reliability, and (3) the relation between profit maximisation and public
interests. We test this roadmap on the basis of the empirical literature and case studies on
electricity, natural gas, drinking water, wastewater, and railways.
theory, we analyse the relationship between reliability and various types of government policy:
privatisation, liberalisation, regulation, unbundling, and `commitment policy¿. We let
government policy depend on (1) the feasibility of competition between networks, (2)
contractibility of reliability, and (3) the relation between profit maximisation and public
interests. We test this roadmap on the basis of the empirical literature and case studies on
electricity, natural gas, drinking water, wastewater, and railways.