Advanced Search
MyIDEAS: Login to save this paper or follow this series

Should Network Operators Be Allowed To Build Joint Facilities?

Contents:

Author Info

  • Ramiro Losada

    ()

Abstract

In this paper, we address the issue of how the possibility for areements among network operators about building joint facilities affects their networks qualities, their profits and social welfare. We show that allowing the network operators to build joint facilities can make the network operators to increase their network qualities when they decide so simultaneously. When we analyze entry, only the incumbent increases his network quality. The main result is that network operators and the regulator coincide in thier decisions about how much the network operators should build jointly when the network operators decide simultaneously their network qualities. The same result arises when we analyze entry and the network operators are sufficiently differentiated. But, if there is entry and the network operators are not sufficiently differentiated, a regulator is hended to force the network operators to build joint facilities, what is very surprising from the current National Regulatory point of vie w.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://docubib.uc3m.es/WORKINGPAPERS/WE/we043914.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Universidad Carlos III, Departamento de Economía in its series Economics Working Papers with number we043914.

as in new window
Length:
Date of creation: Jul 2004
Date of revision:
Handle: RePEc:cte:werepe:we043914

Contact details of provider:
Postal: C./ Madrid, 126, 28903 Getafe (Madrid)
Phone: +34-91 6249594
Fax: +34-91 6249329
Email:
Web page: http://www.eco.uc3m.es
More information through EDIRC

Related research

Keywords:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Tommaso M. Valletti & Carlo Cambini, 2005. "Investments and Network Competition," RAND Journal of Economics, The RAND Corporation, vol. 36(2), pages 446-468, Summer.
  2. Philippe Chone & Laurent Flochel & Anne Perrot, 2000. "Allocating and Funding Universal Service Obligations in a Competitive Network Market," Econometric Society World Congress 2000 Contributed Papers, Econometric Society 0213, Econometric Society.
  3. d'ASPREMONT, Claude & JACQUEMIN, Alexis, . "Cooperative and noncooperative R&D in duopoly with spillovers," CORE Discussion Papers RP, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) -823, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Armstrong, Mark, 1998. "Network Interconnection in Telecommunications," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 108(448), pages 545-64, May.
  5. Michael Carter & Julian Wright, 1999. "Interconnection in Network Industries," Review of Industrial Organization, Springer, Springer, vol. 14(1), pages 1-25, February.
  6. James J. McAndrews & Rafael Rob, 1994. "Shared ownership and pricing in a network switch," Working Papers 94-6, Federal Reserve Bank of Philadelphia.
  7. Hoernig, Steffen & Pita Barros, Pedro Luis & Valletti, Tommaso, 2001. "Universal Service and Entry: the Role of Uniform Pricing and Coverage Constraints," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2789, C.E.P.R. Discussion Papers.
  8. Matutes, Carmen & Padilla, A. Jorge, 1994. "Shared ATM networks and banking competition," European Economic Review, Elsevier, Elsevier, vol. 38(5), pages 1113-1138, May.
  9. Chone, Philippe & Flochel, Laurent & Perrot, Anne, 2002. "Allocating and funding universal service obligations in a competitive market," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 20(9), pages 1247-1276, November.
  10. Anton, James J. & Vander Weide, James H. & Vettas, Nikolaos, 2002. "Entry auctions and strategic behavior under cross-market price constraints," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 20(5), pages 611-629, May.
  11. Bulow, Jeremy I & Geanakoplos, John D & Klemperer, Paul D, 1985. "Multimarket Oligopoly: Strategic Substitutes and Complements," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 93(3), pages 488-511, June.
  12. Ding Lu, 2001. "Shared network investment," Journal of Economics, Springer, Springer, vol. 73(3), pages 299-312, October.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:cte:werepe:we043914. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: () The email address of this maintainer does not seem to be valid anymore. Please ask to update the entry or send us the correct address.

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.