Strategic Regulation Policy in the Internet
AbstractSome countries are importers while others are exporters of global backbone connectivity. At the same time, input components such as local access are non-traded. This paper analyzes a non-cooperative regulatory game between importing and exporting countries, assuming that the prices of both traded and non-traded inputs can be regulated. We show that exporting countries choose a more restrictive regulation of non-traded goods than importing countries do. We further show that a requirement of international non-discrimination may hurt importing countries, and give firms producing traded inputs incentives to invest in quality degradation. Copyright Springer Science+Business Media, LLC 2006
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Bibliographic InfoArticle provided by Springer in its journal Journal of Regulatory Economics.
Volume (Year): 30 (2006)
Issue (Month): 1 (07)
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Web page: http://www.springerlink.com/link.asp?id=100298
Complementarities; Regulation; Non-discrimination; Internet; L13; L51; L96;
Find related papers by JEL classification:
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
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.:
- Nicholas Economides, 2004.
"The Economics of the Internet Backbone,"
04-23, NET Institute, revised Oct 2004.
- repec:reg:rpubli:115 is not listed on IDEAS
- James A. Brander, 1995.
"Strategic Trade Policy,"
NBER Working Papers
5020, National Bureau of Economic Research, Inc.
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