Gradual Network Expansion And Universal Service Obligations
Universal service obligations are usually not competitively neutral as they modify the way firms compete in the market. In this paper, we consider a continuum of local markets in a dynamic setting with a stochastically growing demand. The incumbent must serve all markets (ubiquity) possibly at a uniform price and an entrant decides on its market coverage before firms compete in prices. Connecting a market involves a sunk cost. We show that the imposition of a uniform price constraint modifies the timing of entry: for low connection cost markets, entry occurs earlier while for high connection cost markets, entry occurs later.
(This abstract was borrowed from another version of this item.)
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 82 (2011)
Issue (Month): 2 (06)
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=1370-4788|
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=1370-4788|
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.:
- De Villemeur Etienne Billette & Cremer Helmuth & Boldron Francois & Roy Bernard, 2008. "Worksharing: A Calibrated Model," Review of Network Economics, De Gruyter, vol. 7(2), pages 1-22, June.
- repec:cor:louvrp:-2006 is not listed on IDEAS
- D’ALCANTARA, Gonzales & GAUTIER, Axel, "undated". "National postal strategies after a full postal market opening," CORE Discussion Papers RP 2006, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- repec:bpj:rneart:v:7:y:2008:i:2:p:272-293 is not listed on IDEAS