We consider an unregulated incumbent who owns a broadband infrastructure and decides on how much access to provide to a potential entrant. The level of access determines the amount of investment the entrant needs to undertake to enter the market, and the intensity of post-entry competition. We...

Abstract We propose a model of Bertrand competition in which consumers choose firms based on prices and qualities. Service quality depends on congestion, which is a function of capacity and output. We first present theoretical properties of the model. Next, we calibrate the model to the wireless...

Abstract Net neutrality or “Open Internet” rulemaking has been ongoing for more than a decade. Some 50 nations have adopted formal rules including the US (then repealed), the European Union, India, and many countries in Latin America. Among other arguments, it is asserted that net neutrality...

The FCC is currently considering whether it should adopt a uniform rate for pole attachment services for broadband services. Based on Ramsey pricing principles, we find that while historical differences in rates were sensible, technological convergence dictates that broadband providers should...

Proposals to increase regulation of mobile wireless services, for example, by applying “net neutrality" regulation, are often based on claims that such regulation would enhance innovation and increase consumer choice. In fact, they would have the opposite effect. The business practices that...

This paper looks at the effects of different forms of wholesale and retail regulation on retail competition in fixed network telephony markets. We explicitly model two asymmetries between the incumbent operator and a group of homogenous entrants: (i) while the incumbent has zero marginal costs,...

This paper addresses the fundamental question of what costs and prices would look like under competitive conditions and how close the FCC's total element long-run incremental cost (TELRIC) pricing rules allow one to approximate such competitive outcomes. We consider: what types of firms would...