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We consider a market where consumers mix content offered by different firms. We show how tariff structures have an impact on firms' profits and efficiency. As compared to pure linear pricing, when firms charge two-part tariffs they make higher profits, while consumers are worse off and the...
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In some markets firms offer a plethora of pricing schemes, for which the traditional economic interpretation is that firms practice price discrimination. We argue that there may be additional reasons for tariff proliferation if consumers have limited search capabilities. Firms may tacitly...
Persistent link: https://www.econbiz.de/10014260915
In this paper, we analyze the specific national broadband plans which have been developed by some European governments to foster the deployment of next generation access networks, namely in France, Italy, and Portugal. In particular, we discuss the strategies adopted to achieve wide fibre...
Persistent link: https://www.econbiz.de/10008462053
Inspired by the creation of the new Competition Authority in Portugal, we consider the interplay between regulatory agencies with overlapping competencies; for example, a competition authority and a sectoral regulator. We analyse how authorities’ incentives are affected if they can decide...
Persistent link: https://www.econbiz.de/10005662069
Competition authorities must pay attention to many industries simultaneously. Sectoral regulators concentrate on their own industry. Often both types of authority may intervene in specific industries and there is an overlap of jurisdictions. We show how a competition authority’s resource...
Persistent link: https://www.econbiz.de/10005789047
We analyse how sharing rules affect Nash equilibria in Bertrand games, where the sharing of profits at ties is a decisive assumption. Necessary conditions for either positive or zero equilibrium profits are derived. Zero profit equilibria are shown to exist under weak conditions if the sharing...
Persistent link: https://www.econbiz.de/10005791613
Universal service objectives are pervasive in telecommunications, and have gained new relevance after liberalization and the introduction of competition in many markets. Despite their policy relevance, little work has been done allowing for a thorough discussion of instruments designed to...
Persistent link: https://www.econbiz.de/10005791691
We show that the waterbed effect, i.e. the pass-through of a change in one price of a firm to its other prices, is much stronger if the latter include subscription rather than only usage fees. In particular, in mobile network competition with a fixed number of customers, the waterbed effect is...
Persistent link: https://www.econbiz.de/10010898254