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Regulatory Rules to Neutralize Network Dominance

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Abstract

This paper evaluates the effectiveness of several pricing rules intended to promote entry into a network industry dominated by an incumbent carrier. Drawing on the work of Cournot and Hotelling, we develop a model of competition between two interconnected networks.

Suggested Citation

  • Economides, N. & Lopomo, G. & Woroch, G., 1996. "Regulatory Rules to Neutralize Network Dominance," Working Papers 96-14, New York University, Leonard N. Stern School of Business, Department of Economics.
    • Handle: RePEc:ste:nystbu:96-14
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    Cited by:

    1. Kenneth Fjell & Øystein Foros & Debashis Pal, 2010. "Endogenous Average Cost Based Access Pricing," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 36(2), pages 149-162, March.
    2. Iimi, Atsushi, 2007. "Price structure and network externalities in the telecommunications industry : evidence from Sub-Saharan Africa," Policy Research Working Paper Series 4200, The World Bank.
    3. Stephenson, Sherry M., 2002. "Non-Tariff Barriers and the Telecommunications Sector," Discussion Paper Series 26213, Hamburg Institute of International Economics.
    4. James J. McAndrews & William Roberds, 1997. "A model of check exchange," Working Papers 97-16, Federal Reserve Bank of Philadelphia.
    5. Stephenson, Sherry M., 2002. "Non-Tariff Barriers and the Telecommunications Sector," HWWA Discussion Papers 160, Hamburg Institute of International Economics (HWWA).
    6. Cave, Martin E. & Mariscal, Elisa V., 2020. "The impact of telecommunications regulation on less well-off Mexican households," Telecommunications Policy, Elsevier, vol. 44(4).
    7. Ulrich Berger, 2003. "Two-way interconnection and the collusive role of the access charge," Industrial Organization 0303011, University Library of Munich, Germany.

    More about this item

    Keywords

    PRICING; COMPETITION; ECONOMIC MODELS;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General

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