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Bill and Keep as the Efficient Interconnection Regime?: A Reply

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  • Degraba Patrick

    (Charles River Associates)

Abstract

In a critique of my paper outlining the Central Office Bill and Keep (COBAK) proposal, Wright (2001) offers two sets of conditions under which a COBAK interconnection regime would not lead to optimal utilization. While there could be conditions under which some interconnection regime other than COBAK would lead to higher social surplus measures in very simple models of telecommunications, the critique provides no evidence that these conditions would be empirically significant. This, along with the other considerations explained in the proposal and not considered in the analysis, continue to suggest that COBAK is an appropriate policy recommendation.

Suggested Citation

  • Degraba Patrick, 2002. "Bill and Keep as the Efficient Interconnection Regime?: A Reply," Review of Network Economics, De Gruyter, vol. 1(1), pages 1-5, March.
    • Handle: RePEc:bpj:rneart:v:1:y:2002:i:1:n:4
    DOI: 10.2202/1446-9022.1003
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    Cited by:

    1. repec:ces:ifodic:v:4:y:2006:i:3:p:14567465 is not listed on IDEAS
    2. Vogelsang Ingo, 2013. "The Endgame of Telecommunications Policy? A Survey," Review of Economics, De Gruyter, vol. 64(3), pages 193-270, December.
    3. Cunningham, Brendan M. & Alexander, Peter J. & Candeub, Adam, 2010. "Network growth: Theory and evidence from the mobile telephone industry," Information Economics and Policy, Elsevier, vol. 22(1), pages 91-102, March.
    4. Ingo Vogelsang, 2006. "Access and Interconnection Pricing Issues in Telecommunications," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 4(03), pages 3-9, October.
    5. Joshua S. Gans & Stephen P. King & Julian Wright, 2005. "Wireless Communications," Monash Economics Working Papers archive-45, Monash University, Department of Economics.
    6. Ingo Vogelsang, 2003. "Price Regulation of Access to Telecommunications Networks," Journal of Economic Literature, American Economic Association, vol. 41(3), pages 830-862, September.
    7. Roberto Roson, 2003. "Incentives for the Expansion of Network Capacity in a “Peering” Free Access Settlement," Netnomics, Springer, vol. 5(2), pages 149-159, November.
    8. Harbord, David & Pagnozzi, Marco, 2008. "On-Net/Off-Net Price Discrimination and 'Bill-and-Keep' vs. 'Cost-Based' Regulation of Mobile Termination Rates," MPRA Paper 14540, University Library of Munich, Germany.

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