This article presents the difficulties associated with the implementation of the regulatory goal of promoting investment and innovation within the area of sector specific regulation in telecoms. The encouragement of efficient investment is one of the major goals reflected in the EC and domestic...

We consider a moral hazard economy in banks and production to study how incentives for risk taking are affected by the quality of supervision. We show that low interest rates may generate excessive risk taking. Because of a pecuniary externality, the market equilibrium may not be optimal and...

We investigate the effects of alternative open access regimes on market performance. In particular, by means of an economic laboratory experiment we compare the market outcomes under unregulated wholesale competition, under a price-fixing rule (where firms must maintain their wholesale price for...

This paper studies the incentives of an unregulated monopolist to undertake the socially optimal investment in NGA networks when it takes into account the fact that the NGA deployment is a two-dimensional investment decision concerning both the quality (or equivalently, technology) and the...

The review of the Universal Service Obligation (USO) has recently been debated in the European Union (EU). Under discussion there was the extension of the current universal service definition to include broadband access, for which some theoretical and empirical support exists. In fact the...

This paper analyzes the incentives to invest in Next Generation Access Networks (NGA) in a framework with horizontal product differentiation with price competition between an investing and an access seeking firm. Given uncertainty about the success of the NGA, I compare regulatory regimes with...

This paper studies the incentives of an unregulated monopolist to undertake the socially optimal investment in NGA networks when it takes into account the fact that the NGA deployment is a two-dimensional investment decision concerning both the quality (or equivalently, technology) and the...

Next Generation Access (NGA) networks entails significant investments but brings with it promises of a "brand new world" in telecommunications. In this paper, we provide an overview of some of its implications. In particular, we argue that it is not clear whether the "old" vertical integration...