According to standard economic wisdom, asymmetric information about product quality leads to a quality deterioration in the market. Suppose that a higher investment level makes the realization of high quality more likely. Then, if consumers observe the investment (but not the realization of...

The introduction of packet-switched telephony in the form of VoIP raises concerns about current regulatory practice. Access regulation has been designed for traditional telephony on PSTN networks. In this paper we analyze the effect of access regulation of PSTN networks on the adoption of a new...