Small, Medium and Large Companies in the Supply of Water in Spain (1840-1940)

Abstract

This chapter is a study on the public limited companies of drinking water supply in Spain between 1840 and 1960. The first objective is to consider the role played by the services sector in the economy and, especially, the companies dedicated to water supply. The development of these companies was determined by the nature of the activity -considered as a public service-, which was based on the figure of the natural monopoly and the formula of the administrative concession. For this reason, the business strategy that companies practiced to dominate the market and the risk function that this type of business entailed is analyzed. The trajectory of the companies is interpreted by examining their economic and financial structure. The profits and the level of profitability of the companies, show a flourishing sector that contributed to the modernization of the cities.