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We provide evidence of an inherent trade-off between access regulation and investment incentives in telecommunications … accommodates: different investment incentives for incumbents and entrants; a strategic interaction of entrants' and incumbents … investment. Thus promoting market entry by means of regulated access undermines incentives to invest in facilities …
Persistent link: https://www.econbiz.de/10003871767
We provide evidence of an inherent trade-off between access regulation and investment incentives in telecommunications … accommodates: different investment incentives for incumbents and entrants; a strategic interaction of entrants' and incumbents … investment. Thus promoting market entry by means of regulated access undermines incentives to invest in facilities …
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The majority of industrial organizations literature on network externalities looks at firm behavior under given market characteristics. The present paper instead asks the question whether the presence of network externalities can change market characteristics, specifically, whether an initially...
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interconnected nature of the economy. Preserving incentives and lowering barriers to invest thus are paramount. Roaming arrangements … poor incentives created by liberal data roaming policy may have cost the economy an estimated $20 billion in output, $11 …
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