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infrastructure seem to be uncontroversial, a universal NGA coverage appears to be a rather unrealistic objective without government … inefficient given the uncertainty about future returns on NGA infrastructure-based services and the public authorities’ incomplete …
Persistent link: https://www.econbiz.de/10010258770
I generalize the workhorse model of network competition (Armstrong, 1998; Laffont, Rey and Tirole, 1998a,b) to include income effects in call demand. Income effects imply that call demand depends also on the subscription fee, not only on the call price. In the standard case of differentiated...
Persistent link: https://www.econbiz.de/10013069126
This note demonstrates that the puzzling profit neutrality of access charges, i.e., the networks' profits are independent of the access charge with two-part call tariffs, depends crucially on a specific property of subscription demand. Profit neutrality is equivalent to the subscription...
Persistent link: https://www.econbiz.de/10012724007
Capacity-based interconnection (CBI) prices vary exactly with the costs a network provider incurs when supplying an interconnecting party. That is, they equal incremental costs, rather than being averaged over any output measure. We argue such prices (1) are as practicable and more efficient...
Persistent link: https://www.econbiz.de/10012715496
The changing role of the Internet Engineering Task Force (IETF) standard setting process from designing and implementing the best effort TCP/IP protocol as a universal standard towards a platform for dealing with the increasing need for variety in the design of a Quality of Service (QoS)...
Persistent link: https://www.econbiz.de/10010212013
We develop a model of competition between interconnected networks, with separate local and long-distance markets, allowing for various degrees of symmetry between carriers. Assuming two part pricing, we show that effective competition can be achieved with simple regulations involving mandatory...
Persistent link: https://www.econbiz.de/10014171873
The "ladder of investment" is a regulatory approach proposed by Martin Cave (2006), which has been widely embraced by …, successively, with different levels of access - the "rungs" of the investment ladder, while inducing them to climb the ladder by ….e., by setting sunset clauses). Proponents of the ladder of investment approach claim that such regulatory measures would …
Persistent link: https://www.econbiz.de/10014202294
We analyse competition between perfectly substitutable networks. Monopolization can be sustained in equilibrium by asymmetric access prices whereby entry is deterred by a set of margin squeezes. A regulatory package consisting of (i) mandatory interconnection; (ii) reciprocal access prices;...
Persistent link: https://www.econbiz.de/10014212811
This paper considers a vertically separated industry with an upstream monopolist who supplies an essential input to two downstream Cournot firms. This situation is relevant to a number of sectors, including the telecommunications industry where trunk operators must have access to the local...
Persistent link: https://www.econbiz.de/10014215832