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Regulating a monopoly with universal service obligations: The role of flexible tariff schemes

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  • Willington, Manuel
  • Li Ning, Jorge

Abstract

This paper's purpose is to study the problem of a utility monopoly's regulator, which has a universal service goal that is binding, in the sense that there is no two-part tariff that can induce efficient consumption, self-finance the firm, and guarantee universal access at the same time.

Suggested Citation

  • Willington, Manuel & Li Ning, Jorge, 2014. "Regulating a monopoly with universal service obligations: The role of flexible tariff schemes," Telecommunications Policy, Elsevier, vol. 38(1), pages 32-48.
    • Handle: RePEc:eee:telpol:v:38:y:2014:i:1:p:32-48
    DOI: 10.1016/j.telpol.2013.04.005
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    1. Jörg Finsinger & Ingo Vogelsang, 1985. "Strategic Management Behavior Under Reward Structures in a Planned Economy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(1), pages 263-269.
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    8. Valletti, Tommaso M & Hoernig, Steffen & Barros, Pedro P, 2002. "Universal Service and Entry: The Role of Uniform Pricing and Coverage Constraints," Journal of Regulatory Economics, Springer, vol. 21(2), pages 169-190, March.
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    12. Mirabel, F. & Poudou, J.-C. & Roland, M., 2009. "Universal service obligations: The role of subsidization schemes," Information Economics and Policy, Elsevier, vol. 21(1), pages 1-9, February.
    13. Bertoletti, Paolo & Poletti, Clara, 1997. "Welfare effects of discriminatory two-part tariffs constrained by price caps," Economics Letters, Elsevier, vol. 56(3), pages 293-298, November.
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    15. Manuel Willington & Fabián Basso, 2006. "Regulación, Cobertura y Competencia en el Mercado de la Banda Ancha," ILADES-UAH Working Papers inv177, Universidad Alberto Hurtado/School of Economics and Business.
    16. Vogelsang, Ingo, 1989. "Two-part tariffs as regulatory constraints," Journal of Public Economics, Elsevier, vol. 39(1), pages 45-66, June.
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    More about this item

    Keywords

    Monopoly regulation; Network utilities; Universal service obligation; Non-linear tariffs;
    All these keywords.

    JEL classification:

    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • D52 - Microeconomics - - General Equilibrium and Disequilibrium - - - Incomplete Markets
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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