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Strategic Regulation Policy in the Internet

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  • Østein Foros

    ()

  • Hans Kind

    ()

  • Lars Søard

    ()

Abstract

Some 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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File URL: http://hdl.handle.net/10.1007/s11149-006-0009-2
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Bibliographic Info

Article provided by Springer in its journal Journal of Regulatory Economics.

Volume (Year): 30 (2006)
Issue (Month): 1 (07)
Pages: 63-84

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Handle: RePEc:kap:regeco:v:30:y:2006:i:1:p:63-84

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Web page: http://www.springerlink.com/link.asp?id=100298

Related research

Keywords: Complementarities; Regulation; Non-discrimination; Internet; L13; L51; L96;

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  1. James A. Brander, 1995. "Strategic Trade Policy," NBER Working Papers 5020, National Bureau of Economic Research, Inc.
  2. Economides, Nicholas, 2004. "The Economics of the Internet Backbone," Working paper 115, Regulation2point0.
  3. repec:reg:rpubli:115 is not listed on IDEAS
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