We explore the Alchian–Allen effect–that is, the effect of an absolutely equal increase in the price of two goods on their demand ratio–for conditional (viz. short-run) and unconditional (viz. long-run) demand functions. We show that the Alchian–Allen effect for unconditional demand...

This paper investigates the effects of entry on welfare in the Telecommunications industry. Equilibrium pricing parameters for monopoly and duopoly situations are determined where access charges are chosen non-cooperatively. Welfare comparisons between alternative access pricing regimes are also...