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The Access Pricing Problem with Deregulation: A Note

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Author Info
Armstrong, Mark
Vickers, John

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Abstract

This note extends the analysis of M. Armstrong, C. Doyle, and J. Vickers (1996) to the case of retail price deregulation. It is shown that the optimal access price may be above, below, or (in the linear case) equal to marginal cost; that optimal regulation of the margin between the retail price and the access price entails the efficient component pricing rule; and that welfare and entrant profit are higher when the level of the access price, rather than the margin, is regulated. Copyright 1998 by Blackwell Publishing Ltd

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Article provided by Blackwell Publishing in its journal Journal of Industrial Economics.

Volume (Year): 46 (1998)
Issue (Month): 1 (March)
Pages: 115-21
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Handle: RePEc:bla:jindec:v:46:y:1998:i:1:p:115-21

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  1. Joan Calzada & Francesc Trillas, 2005. "The interconnection prices in telecomunications: from theory to practice," Hacienda Pública Española, IEF, vol. 173(2), pages 85-125, June. [Downloadable!]
  2. Paul Bijl & Martin Peitz, 2009. "Access regulation and the adoption of VoIP," Journal of Regulatory Economics, Springer, vol. 35(2), pages 111-134, April. [Downloadable!] (restricted)
    Other versions:
  3. Christoph Bier & Dieter Schmidtchen, . "Regulierung in vertikal verknüpften Märkten: Maximieren diskriminierungsfreie kostenorientierte Netznutzungsentgelte die gesellschaftliche Wohlfahrt?," German Working Papers in Law and Economics 2006-1-1138, Berkeley Electronic Press. [Downloadable!]
  4. Kaisa Kotakorpi, 2002. "Access Pricing and Competition in Telecommunications," Discussion Papers 283, Government Institute for Economic Research Finland (VATT). [Downloadable!]
  5. James Reitzes, 2008. "Downstream price-cap regulation and upstream market power," Journal of Regulatory Economics, Springer, vol. 33(2), pages 179-200, April. [Downloadable!] (restricted)
  6. Sue Mialon, 2007. "Pricing access in network competition," Journal of Regulatory Economics, Springer, vol. 31(1), pages 109-123, February. [Downloadable!] (restricted)
  7. Armstrong, Mark, 2006. "Price discrimination," MPRA Paper 4693, University Library of Munich, Germany. [Downloadable!]
  8. Joshy Easaw, 2000. "Network Access Regulation and Competition Policy: An Assessment of the “Direct-Plus-Opportunity Costâ€\x9D Regime and Policy Options," Empirica, Springer, vol. 27(2), pages 133-156, June. [Downloadable!] (restricted)
  9. Vincent Rious & Jean-Michel Glachant & Yannick Perez & Philippe Dessante, 2008. "The diversity of design of TSOs," Post-Print hal-00318518_v1, HAL. [Downloadable!]
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  10. Armstrong, Mark, 2001. "The theory of access pricing and interconnection," MPRA Paper 15608, University Library of Munich, Germany. [Downloadable!]
  11. Laurent Flochel, 1999. "Interconnexion de réseaux et charge d'accès : une analyse stratégique," Annales d'Economie et de Statistique, ADRES, issue 53, pages 08, Janvier-M. [Downloadable!]
  12. Herguera-García, Iñigo & Aguilar-Barceló, José G., 2004. "El papel de las tarifas de interconexión en las industrias en red
    [The role of interconnection charges in network industries]
    ," MPRA Paper 4733, University Library of Munich, Germany, revised Jan 2004. [Downloadable!]
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