16. Public Services and Natural Monopolies: What Role for the State?

This chapter delves into Léon Walras' economic theories, focusing on the role of the state in managing public services and natural monopolies. It explores the evolution of his thoughts on free competition and its exceptions, with a particular emphasis on railways. The text discusses the distinction between 'moral monopolies' and 'natural and necessary monopolies,' and how the state should intervene in these areas. Walras' views on the organization of monopolies, including the potential for state ownership or regulation, are also examined. The chapter concludes with a critique of Marxist collectivism and a proposal for a balanced approach to economic organization. Readers will gain insights into the historical debates on economic policy and the foundations of modern economic thought, particularly in the context of public services and natural monopolies.