Level of Access and Competition in Broadband Markets
AbstractWe consider an unregulated incumbent who owns a broadband infrastructure and decides on how much access to provide to a potential entrant. The level of access determines the amount of investment the entrant needs to undertake to enter the market, and the intensity of post-entry competition. We show that the equilibrium level of access is higher when the sensitivity of product differentiation to the level of access is lower, and when the investment cost is higher. We also show that the incumbent sets a suboptimally low (high) level of access if the degree of service differentiation is sufficiently high (low).
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Bibliographic InfoArticle provided by De Gruyter in its journal Review of Network Economics.
Volume (Year): 11 (2012)
Issue (Month): 1 (March)
Contact details of provider:
Web page: http://www.degruyter.com
Other versions of this item:
- M. Bourreau & P. Dogan, . "Level of Access and Competition in Broadband Markets," Working Paper 33656, Harvard University OpenScholar.
- Bourreau, Marc & Dogan, Pinar, 2010. "Level of Access and Competition in Broadband Markets," Scholarly Articles 4454152, Harvard Kennedy School of Government.
- Bourreau, Marc & Dogan, Pinar, 2010. "Level of Access and Competition in Broadband Markets," Working Paper Series rwp10-006, Harvard University, John F. Kennedy School of Government.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Marc Bourreau & Johan Hombert & Jerome Pouyet & Nicolas Schutz, 2011.
"Upstream Competition between Vertically Integrated Firms,"
Journal of Industrial Economics,
Wiley Blackwell, vol. 59(4), pages 677-713, December.
- Marc Bourreau & Johan Hombert & Jérôme Pouyet & Nicolas Schutz, 2009. "Upstream Competition between Vertically Integrated Firms," PSE Working Papers hal-00440126, HAL.
- Marc Bourreau & Pinar Dogan, 2006.
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American Economic Review,
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- Vareda, João, 2007.
"Unbundling and Incumbent Investment in Quality Upgrades and Cost Reduction,"
FEUNL Working Paper Series
wp526, Universidade Nova de Lisboa, Faculdade de Economia.
- João Vareda, 2007. "Unbundling and Incumbent Investment in Quality Upgrades and Cost Reduction," Working Papers 31, Portuguese Competition Authority.
- Ingo Vogelsang, 2003. "Price Regulation of Access to Telecommunications Networks," Journal of Economic Literature, American Economic Association, vol. 41(3), pages 830-862, September.
- Arya, Anil & Mittendorf, Brian & Sappington, David E.M., 2008. "Outsourcing, vertical integration, and price vs. quantity competition," International Journal of Industrial Organization, Elsevier, vol. 26(1), pages 1-16, January.
- M. Bourreau & P. Dogan, .
"Unbundling the Local Loop,"
33648, Harvard University OpenScholar.
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