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Competition between parallel infrastructures incorporates opposing welfare effects. The gain from reduced deadweight loss might be outweighed by the inefficient duplication of an existing infrastructure. Using data from broadband internet access for Western Europe 2000-2004, this paper...
Persistent link: https://www.econbiz.de/10014067747
We introduce a model of asymmetric competition where two network operators with different investment costs may build an internet access infrastructure and where a virtual operator provides services through third-party access. We show that the virtual operator requests access from the low cost...
Persistent link: https://www.econbiz.de/10012004876
Infrastructure regulation has faced transitions not just in recent years, but also throughout much its existence over the last century. Among the many crucial issues in these transitions has been how to handle network effects. These can both cause monopoly and complicate the management of...
Persistent link: https://www.econbiz.de/10014204814
This paper examines the output effect of third-degree price discrimination in symmetrically differentiated oligopoly. We find that when the sellers' input costs are chosen endogenously by an upstream supplier with market power, as opposed to being fixed exogenously, long-standing qualitative...
Persistent link: https://www.econbiz.de/10013241795
An important reason for the Internet's remarkable growth over the last quarter century is the "end-to-end" principle that networks should confine themselves to transmitting generic packets without worrying about their contents. Not only has this made deployment of internet infrastructure cheap...
Persistent link: https://www.econbiz.de/10014204581
Recent claims that online platforms have secured permanent monopolies, protected by barriers to entry from network effects and stockpiles of data, and should be the focus of intense antitrust and regulatory scrutiny, are inconsistent with the economics, technology, and history of online...
Persistent link: https://www.econbiz.de/10012951065
This paper provides an overview of recent developments in algorithmic antitrust, and the economics and legal issues raised in the areas of abuse of dominance, algorithmic pricing and collusion, and mergers and acquisition. The general theme is that while much has been made of the possible...
Persistent link: https://www.econbiz.de/10014095428
We study the performance of different regulatory approaches for the expansion of electricity transmission networks in the light of realistic demand patterns and fluctuating wind power. In particular, we are interested in the relative performance of a combined merchant-regulatory mechanism...
Persistent link: https://www.econbiz.de/10009347966
This article proposes a duopoly model based on a model initially introduced by Shubik and Levitan to analyze the competition based on mobility and data volume between fixed and mobile broadband access. By the description of asymmetrical characteristics of fixed and mobile broadband offers and...
Persistent link: https://www.econbiz.de/10014190807
In digital markets, big technology firms like Google, Microsoft, Amazon, etc., compete with each other across multiple markets. Some markets are platforms/two-sided with products offered for free to users, whereas other markets are one-sided with paid products. In some cases, market competition...
Persistent link: https://www.econbiz.de/10013295216