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Access prices, unbundling and product variety in European Internet markets

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  • Edmond Baranes
  • Scott J. Savage

Abstract

A fundamental policy in European broadband regulation is unbundled access to the local loop of the incumbent telephone company. We present comparative static results that show as the access price decreases, the retail price decreases, the variety of plans offered by Internet service providers increases and the quantity of each variety increases when a threshold condition is met. Using data from 18 European countries from 2006 to 2012, we find empirical support for these results when Internet product variety is measured by variation in download speeds.

Suggested Citation

  • Edmond Baranes & Scott J. Savage, 2018. "Access prices, unbundling and product variety in European Internet markets," Applied Economics, Taylor & Francis Journals, vol. 50(60), pages 6576-6587, December.
    • Handle: RePEc:taf:applec:v:50:y:2018:i:60:p:6576-6587
    DOI: 10.1080/00036846.2018.1493187
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