Electric utility deregulation: Merger mania

摘要

The economics of "free" competition are familiar enough. Seeing a better value from Supplier B than from Supplier A, a customer can switch from A to B. That leads both A and B to try to keep prices down and otherwise outdo each other to retain that customer. However, what if "deregulation" leads to elimination of Supplier B? That's what's happening in the utility industry right now. All over the country, Supplier B is being bought out by, or merged with, Supplier A. No matter how theoretically free the customer's choice may become, one potential supplier has been removed from the market, and is not there to be chosen.