According to European directives the German state deregulated several sectors which had been protected monopolies for a long time. A regulatory authority was established for the telecommunication sector with the competence to decide about the access conditions to the bottleneck "local loop". If...

Under ex ante access regulation entrants often claim that access fees are excessive. I show that this is only the case if further entry is admitted. If the entrant is protected from further entry it would agree with the incumbent upon a strictly positive access fee which may exceed the efficient...