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Extra info for What's Yours is Mine: Open Access and the Rise of Infrastructure Socialism
Example text
If producers simply gain mandatory interconnection to pre-existing networks, competitive pressures to undertake wiring or conduit installation or other infrastructure are undermined. Rethinking property rights to better appreciate such varieties of ‘‘long and thin’’ property may become increasingly important as arrangements become more complex. The onerous risks and complexities involved in network expansion will be made as attractive as possible by having lots of pots of gold at the ends of a number of rainbows.
Advocates of open access ignore the principle that innovation in transmission and distribution is as crucial as any other kind of innovation. The right approach to fostering competition can set in motion an industry restructuring that is as fully efficient and entrepreneurial as possible, one in which entrepreneurs rather than captive ratepayers bear the risks. Years would be saved, since the need for future legislation to correct distortions caused by forced access would be minimized. When all is said and done, the proper market structure lies somewhere on a continuum between central generation 49 WHAT’S YOURS IS MINE and long-distance transmission on the one hand and on-site generation with zero transmission on the other.
18 It is far more problematic to work around the numerous near-the-user transformers common in the United States. Key to solving the problem, though, is the promise of rewards—particularly to the extent that powerline communications technology is faster than cable or DSL Internet service. 19 Open-access policies that would dampen the present value of expanded investments in this cutting-edge technology would be a mistake, helping to ensure that the technology, assuming it would prove viable, never arrives at all.