This paper aims to introduce issues that relate regulation and innovation in the telecommunications industry. We try to address the following question: which types of regulatory schemes are likely to promote innovation in a fast-growing telecommunications industry? Section 2 analyses ex ante...

This paper analyzes the impact of music file sharing on CD purchases. Traditionally, two arguments are opposed concerning the impact of music file sharing on CD sales. On the one hand, MP3 downloads only reduces sales of legitimate CDs (the "competition effect"). On the other hand, consumption...

L'industrie musicale est en crise alors que dans le même temps la consommation de musique ne s'est jamais aussi bien portée. Ces difficultés ont conduit à des politiques publiques défensives, concentrées sur la protection de la filière musicale contre le piratage. Pourtant l'impact du...

We propose a model of two-tier competition between vertically integrated firms and unintegrated downstream firms. We show that, even when integrated firms compete in prices to offer a homogeneous input, the Bertrand result may not obtain, and the input may be priced above marginal cost in...

In this paper, we study how the terms of access to an incumbent’s infrastructure (i.e., the level of access and price) affect an entrant’s incentives to build its own infrastructure. Setting a high level of access (e.g., a resale arrangement), which requires relatively small up-front...

We study how the migration from an old to a new technology is affected by the access price to the old technology. We show that both the incumbent and the regulator are willing to set a very high access price to accelerate consumers' migration to the new technology. When the quality of the old...

The ladder of investment is a regulatorymechanism proposed by Cave [2006], which has been widely adopted by national regulatory authorities in Europe in the telecommunications sector to promote entry ofefficient competitors to the incumbent operators. The idea is to propose successively...

Two television channels compete on programming with respect to both program profile and program quality. At the equilibrium, program diversity and program quality depend on the characteristics of quality competition. We elaborate a model of differentiation to study this phenomenon. We determine...

Using a survey on cultural habits and consumption behavior of 2,000 individuals, we study the determinants of physical purchases and pay-downloads in four cultural industries: books, recorded music, movies, and video games. We show that the impact of piracy on legal purchases differs among these...