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Public and Private Investments in Regulated Network Industries: Coordination and Competition Issues

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Author Info

  • Jullien Bruno

    (Toulouse School of Economics)

  • Pouyet Jerome

    (Paris School of Economics)

  • Sand-Zantman Wilfried

    (Toulouse School of Economics)

Abstract

This paper analyzes the relationship between a national regulator, an incumbent and a local government in a context where investment in a new network has to be undertaken. In the light of the recent debates on the competition between private firms and local governments, we analyze the limits to be put on the local public intervention in these markets. We show that banning local government intervention can be welfare-enhancing either in the presence inter-districts externality or with asymmetric information or in case of conflicting objectives between the regulator and local governments.

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File URL: http://www.degruyter.com/view/j/rne.2010.9.4/rne.2010.9.4.1232/rne.2010.9.4.1232.xml?format=INT
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Bibliographic Info

Article provided by De Gruyter in its journal Review of Network Economics.

Volume (Year): 9 (2010)
Issue (Month): 4 (December)
Pages: 1-22

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Handle: RePEc:bpj:rneart:v:9:y:2010:i:4:n:3

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  1. Caillaud, Bernard & Tirole, Jean, 2004. "Essential facility financing and market structure," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 667-694, March.
  2. Jullien, Bruno & Pouyet, Jérôme & Sand-Zantman, Wilfried, 2009. "Contracting and Regulation under the Threat of Duplication," IDEI Working Papers 563, Institut d'Économie Industrielle (IDEI), Toulouse.
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Cited by:
  1. Jullien, Bruno & Pouyet, Jérôme & Sand-Zantman, Wilfried, 2009. "Contracting and Regulation under the Threat of Duplication," TSE Working Papers 09-071, Toulouse School of Economics (TSE).
  2. Briglauer, Wolfgang & Holzleitner, Christian, 2014. "Efficient contracts for government intervention in promoting next generation communications networks," ZEW Discussion Papers 14-022, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  3. Daniel Montolio & Francesc Trillas, 2011. "Regulatory federalism and industrial policy in broadband telecommunications," Working Papers 2011/15, Institut d'Economia de Barcelona (IEB).

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