Skip to main content

Quality of service, efficiency and scale in network industries: an analysis of European electricity distribution

Buy Article:

$51.63 plus tax (Refund Policy)


Quality of service (QoS) is of major economic significance in natural monopoly infrastructure industries. In this article, we present an efficiency analysis of electricity distribution networks from seven European countries. We apply the stochastic frontier analysis method to multi-output translog input distance function models to estimate cost efficiency and scale economies. We show that introducing the quality dimension into the analysis affects estimated efficiency significantly, especially that smaller utilities' efficiency seems to decrease. Our results emphasize that QoS should be an integrated part of efficiency and economic analysis of regulated natural monopolies.

Document Type: Research Article


Affiliations: 1: WIK Wissenschaftliches Institut fur Infrastruktur und Kommunikationsdienste GmbH, 2: Faculty of Economics, University of Cambridge, 3: Judge Business School, University of Cambridge,

Publication date: September 1, 2009

More about this publication?

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more
Real Time Web Analytics