In 2003, the dominant former monopolist, which was subject to a stringent price regulation, and the new entrant in the local calls market of Korea made an agreement in which the entrant was to raise the price while the incumbent was to hand over market shares or transfer money using...

There is growing sentiment that rate rebalancing to eliminate cross subsidies between local business and local residential telephone markets is necessary to induce efficient entry in the residential market. If the elasticity of supply with respect to the relative prices for business and...