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Allocating and Funding Universal Service Obligations in a Competitive Network Market

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Author Info
Philippe Chone (INSEE and CREST-LEI)
Laurent Flochel (University of Evry - Val d'Essonne)
Anne Perrot (CREST-LEI)

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Abstract

We examine, in a network market open to competition, various mechanisms of allocating and funding ''universal service obligations'' among agents (rival operators and consumers). The obligations we consider are geographic ubiquity and non discrimination. We analyze, from both the efficiency and equity point of views, the respective advantages of a ''restricted-entry'' system (where the entrant is not allowed to serve high cost consumers) and the ''pay or play'' system at work for instance in Australia. We show that the pay or play regulation always dominates the restricted-entry regulation under ubiquity constraint alone. This result no longer holds when the regulator imposes also the non discrimination constraint.

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Publisher Info
Paper provided by Econometric Society in its series Econometric Society World Congress 2000 Contributed Papers with number 0213.

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Date of creation: 01 Aug 2000
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Handle: RePEc:ecm:wc2000:0213

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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.:
  1. Paul R. Milgrom, 1985. "Auction Theory," Cowles Foundation Discussion Papers 779, Cowles Foundation, Yale University. [Downloadable!]
  2. Anton, James J. & Vander Weide, James H. & Vettas, Nikolaos, 1999. "Strategic Pricing and Entry under Universal Service and Cross-Market Price Constraints," Working Papers 99-04, Duke University, Department of Economics. [Downloadable!]
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  3. Armstrong, Mark & Doyle, Chris & Vickers, John, 1996. "The Access Pricing Problem: A Synthesis," Journal of Industrial Economics, Blackwell Publishing, vol. 44(2), pages 131-50, June. [Downloadable!] (restricted)
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(explanations, 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.)

  1. Ramiro Losada, 2004. "On The Definition Of Affordable Prices Under Universal Service Obligations," Economics Working Papers we044015, Universidad Carlos III, Departamento de Economía. [Downloadable!]
  2. repec:mop:credwp:04.07.47 is not listed on IDEAS
  3. Laura Ilie & Ramiro Losada, 2004. "Endogenous Financing Of The Universal Service," Economics Working Papers we044116, Universidad Carlos III, Departamento de Economía. [Downloadable!]
  4. Aguilar-Barceló, José G., 2003. "El estado actual de las telecomunicaciones en México: la regulación que no llega
    [The state of the telecommunications sector in Mexico: when will be realized a new regulation?]    ," MPRA Paper 4734, University Library of Munich, Germany, revised 09 Jun 2003. [Downloadable!]
  5. Sebastien Lecou & Bernard Roy, 2008. "Sharing costs between a Service of General Economic Interest and Competitive Activities: The Example of the Postal Retail Network," Review of Network Economics, Concept Economics, vol. 7(2), pages 309-324, June. [Downloadable!]
  6. Ramiro Losada, 2004. "Should Network Operators Be Allowed To Build Joint Facilities?," Economics Working Papers we043914, Universidad Carlos III, Departamento de Economía. [Downloadable!]
  7. repec:mop:credwp:07.01.67 is not listed on IDEAS
  8. repec:mop:credwp:03.11.41 is not listed on IDEAS
  9. Poudou, J.C. & Roland, M. & Thomas, L., 2007. "Universal Service Obligations and Competition with Asymmetric Information," Cahiers du LASER (LASER Working Papers) 2007.22, LASER (Laboratoire de Science Economique de Richter), Faculty of Economics, University of Montpellier 1. [Downloadable!]
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