Leopold Sgner () (Department of Quantitative Economics, Vienna University of Economics and Business Administration)
Abstract
Standard microeconomics tells us that enforcing competition raises social welfare. Second we know form the theory of natural monopoly regulation that Ramsey-pricing will maximize your welfare function. This article tries to analyze a multiproduct enterprise producing in both, markets with competition and markets without competition. The latter ones are considered to be subject to regulation. The article starts with a short survey of EU-standards concerning telecommunications. Thus, the first part analyzes the EU- directives concerning competition, cost accounting and regulation. According to EU-directives 95/62 and 92/44 regulating telephony and leased lines respectively, we can see that all non-competition tariffs have to be cost based. This simply means that prices have to be justified by means of a proper cost accounting system. Unfortunately the standards are not very detailed. This has lead to different cost accounting principles in different European countries reaching from simple methods to complex process costing schemes. Actually, this raises the important question of the information needed by the regulating authority in telecommunications.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. 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.
For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Related research
Keywords:
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.:
Did you know? All full texts are decentralized with the publishers, none reside on this server, thus making it possible to offer this service for free to all parties.