Bill-and-Keep vs. Cost-Based Access Pricing Revisited
AbstractWe study network competition with two-part tariffs and termination-based price discrimination in the presence of call externalities. We show that both the collusive and the welfare maximizing access charges fall below marginal cost. Moreover, bill-and-keep arrangements are welfare improving compared with cost-based access pricing.
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Bibliographic InfoPaper provided by EconWPA in its series Industrial Organization with number 0408002.
Length: 10 pages
Date of creation: 06 Aug 2004
Date of revision:
Note: Type of Document - pdf; pages: 10
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Access Charge; Bill-and-Keep; Call Externality; Interconnection; Telecommunications;
Find related papers by JEL classification:
- L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
- L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
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