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Network financing with two-part and single tariff

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Author Info
GAUTIER, Axel

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Abstract

This paper compares two types of access pricing: a two-part tariff where the fixed part aims to cover (part of) the network's fixed cost and the variable part covers the network's usage costs and a single tariff where both the usage and (part of) the infrastructure costs are covered by a per-unit access charge. It compares how the regulator trades-off the degree of competition induced by the access charges and the network financing.

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File URL: http://www.core.ucl.ac.be/services/psfiles/dp05/dp2005_34.pdf
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Publisher Info
Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2005034.

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Date of creation: 01 May 2005
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Handle: RePEc:cor:louvco:2005034

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Related research
Keywords: access pricing market structure; network Þnancin;

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Find related papers by JEL classification:
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

References listed on IDEAS
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  1. Caillaud, Bernard, 1990. "Regulation, competition, and asymmetric information," Journal of Economic Theory, Elsevier, vol. 52(1), pages 87-110, October. [Downloadable!] (restricted)
  2. Gans, Joshua S, 2001. "Regulating Private Infrastructure Investment: Optimal Pricing for Access to Essential Facilities," Journal of Regulatory Economics, Springer, vol. 20(2), pages 167-89, September. [Downloadable!] (restricted)
  3. Auriol, Emmanuelle & Laffont, Jean-Jacques, 1992. "Regulation by Duopoly," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 1(3), pages 507-33, Fall.
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  4. Russell Pittman, 2004. "Russian Railways Reform and the Problem of Non-discriminatory Access to Infrastructure," Annals of Public and Cooperative Economics, Blackwell Publishing, vol. 75(2), pages 167-192, 06. [Downloadable!] (restricted)
  5. Axel Gautier & Manipushpak Mitra, 2008. "Regulation of an Open Access Essential Facility," Economica, London School of Economics and Political Science, vol. 75(300), pages 662-682, November. [Downloadable!] (restricted)
    Other versions:
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