Implementation of compettition rules to the privatization of natural monopolies

Abstract

In this thesis, the main aim was to propose a contestable model via implementation of competition rules for the privatization of the natural monopolies, especially which enjoy exclusive and special rights that were granted by the state. In the process of privatization, the governments have to face with two policies namely revenue maximisation and welfare maximisation, which are almost mutually exclusive. Privatization of natural monopolies and deregulation of markets which are closed by legal barriers bring this dilemma before the governments unlike other privatization programs aiming only to transfer property rights of single undertakings functioning either in competitive markets or markets whose entry barriers are relatively lower. For maximising welfare of the society in the privatization process through keeping markets that will be liberalised (deregulated), efficient implementation of competition rules indifferently from ownership status is regarded as crucial for making the markets contestable. So, an additional article to the Turkish Competition Law was proposed. Beside an additional article, establishing a committee in the Turkish Parliament was also suggested for efficient implementation of competition rules to privatization of the natural monopolies. I would like to thank to my adviser Prof. Dr. Eser Karakaş for his assistance to complete my thesis. I would also like to thank Dr. Ümit İzmen for her everlasting support during the preparation of thesis and making the author enjoy incomparable luxury in the meaning of time and geography.