IDEAS home Printed from https://ideas.repec.org/a/diw/diwvjh/78-3-12.html
   My bibliography  Save this article

Preisregulierung zum Schutz der Verbraucher: Wirkungen auf Werbung und Wohlfahrt

Author

Listed:
  • Torsten Steinrücken
  • Sebastian Jaenichen

Abstract

Aiming for protection of consumers the EU has recently implemented direct price regulation in cellular mobile telephony and has announced plans to intensify such regulation in the near future. Using a simple model we examine the welfare effect of a price regulation on the targeted firm's advertisement expenditure. It is shown that sheer price regulation increases welfare only on a small scale. Due to the fact that a price regulation limits the free choice of both marketing instruments: price and (implicitly) advertisement, the enterprise adopts its use of these instruments causing a constriction of the market. Our model shows that price regulation may fail to enhance welfare if the enterprise advertises its products actively while being unregulated. We show that there is an optimal intensity of regulation that depends on the effectiveness of the marketing policies undertaken by the targeted enterprise. In jüngster Zeit hat die EU mit Argumenten des Verbraucherschutzes direkte Preisregulierungen im Mobilfunkbereich durchgesetzt und wird diese in Zukunft noch verschärfen. Unter Zuhilfenahme eines einfachen Modells wird im vorliegenden Beitrag gezeigt, welchen Einfluss derartige Preisregulierung auf die gesamtwirtschaftliche Wohlfahrt ausübt, wenn der Adressat der Regulierung neben dem Preis auch über den Aktionsparameter Werbung verfügt. Die Modellergebnisse zeigen, dass der Wohlfahrtszuwachs sehr gering ausfällt, wenn nur ein Aktionsparameter reguliert wird. Diese geringe Wirksamkeit ist darauf zurückzuführen, dass eine Absenkung des Preises durch staatliche Regulierung das Werbevolumen vermindert und damit den Markt verkleinert. Vor dem Hintergrund der Modellergebnisse erscheint es wohlfahrtsökonomisch sinnvoll, entweder auf eine Preisregulierung zu verzichten, wenn die regulierten Unternehmen in der unregulierten Situation hohe Werbeaufwendungen tätigen, oder stärker den Einsatz absatzpolitischer Instrumente bei der Regulierung zu berücksichtigen, also den Einsatz der Werbung ebenfalls zu regulieren.

Suggested Citation

  • Torsten Steinrücken & Sebastian Jaenichen, 2009. "Preisregulierung zum Schutz der Verbraucher: Wirkungen auf Werbung und Wohlfahrt," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 78(3), pages 188-201.
    • Handle: RePEc:diw:diwvjh:78-3-12
    DOI: 10.3790/vjh.78.3.188
    as

    Download full text from publisher

    File URL: https://doi.org/10.3790/vjh.78.3.188
    Download Restriction: no
    File URL: https://libkey.io/10.3790/vjh.78.3.188?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Laffont, Jean-Jacques & Tirole, Jean, 1994. "Access pricing and competition," European Economic Review, Elsevier, vol. 38(9), pages 1673-1710, December.
    2. Mark J. Roberts & Larry Samuelson, 1988. "An Empirical Analysis of Dynamic, Nonprice Competition in an Oligopolistic Industry," RAND Journal of Economics, The RAND Corporation, vol. 19(2), pages 200-220, Summer.
    3. Sheshinski, Eytan, 1976. "Price, Quality and Quantity Regulation in Monopoly Situations," Economica, London School of Economics and Political Science, vol. 43(17), pages 127-137, May.
    4. David E.M. Sappington & David S. Sibley, 1992. "Strategic Nonlinear Pricing under Price-Cap Regulation," RAND Journal of Economics, The RAND Corporation, vol. 23(1), pages 1-19, Spring.
    5. Knieps, Günter, 2005. "Aktuelle Vorschläge zur Preisregulierung natürlicher Monopole," Discussion Papers 105, University of Freiburg, Institute for Transport Economics and Regional Policy.
    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. Daniel F. Spulber, 1989. "Regulation and Markets," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262192756, December.
    8. Mark Armstrong & Simon Cowan & John Vickers, 1994. "Regulatory Reform: Economic Analysis and British Experience," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262510790, December.
    9. Baake, Pio & Kamecke, Ulrich & Wey, Christian, 2005. "A Regulatory Framework for New and Emerging Markets," MPRA Paper 2518, University Library of Munich, Germany.
    10. Knieps, Günter, 2003. "Telekommunikationsmärkte zwischen Regulierung und Wettbewerb," Discussion Papers 96, University of Freiburg, Institute for Transport Economics and Regional Policy.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Armstrong, Mark & Sappington, David E.M., 2007. "Recent Developments in the Theory of Regulation," Handbook of Industrial Organization, in: Mark Armstrong & Robert Porter (ed.), Handbook of Industrial Organization, edition 1, volume 3, chapter 27, pages 1557-1700, Elsevier.
    2. Stephen P. King, 1997. "National Competition Policy," The Economic Record, The Economic Society of Australia, vol. 73(222), pages 270-284, September.
    3. Carlo Cambini & Laura Rondi, 2009. "Access Regulation, Financial Structure and Investment in Vertically Integrated Utilities:Evidence from EU Telecoms," RSCAS Working Papers 2009/68, European University Institute.
    4. Joan Calzada & Francesc Trillas, 2005. "The interconnection prices in telecomunications: from theory to practice," Hacienda Pública Española / Review of Public Economics, IEF, vol. 173(2), pages 85-125, June.
    5. Shana Cui & David E. M. Sappington, 2021. "Access pricing in network industries with mixed oligopoly," Journal of Regulatory Economics, Springer, vol. 59(3), pages 193-225, June.
    6. James Reitzes, 2008. "Downstream price-cap regulation and upstream market power," Journal of Regulatory Economics, Springer, vol. 33(2), pages 179-200, April.
    7. Mark Armstrong & David E.M. Sappington, 2006. "Regulation, Competition and Liberalization," Journal of Economic Literature, American Economic Association, vol. 44(2), pages 325-366, June.
    8. Bickenbach, Frank, 2000. "Regulation of Europe's network industries: the perspective of the new economic theory of federalism," Kiel Working Papers 977, Kiel Institute for the World Economy (IfW Kiel).
    9. Inderst, Roman & Peitz, Martin, 2011. "Netzzugang, Wettbewerb und Investitionen," ZEW Discussion Papers 11-025, ZEW - Leibniz Centre for European Economic Research.
    10. Jeong-Yoo Kim, 2009. "Competition in the LM market," Netnomics, Springer, vol. 10(2), pages 209-218, October.
    11. Graeme Guthrie, 2006. "Regulating Infrastructure: The Impact on Risk and Investment," Journal of Economic Literature, American Economic Association, vol. 44(4), pages 925-972, December.
    12. de Bijl, P.W.J. & Peitz, M., 2004. "Unbundling the Local Loop : One-Way Access and Imperfect Competition," Discussion Paper 2004-025, Tilburg University, Tilburg Law and Economic Center.
    13. Amrstong, Mark & Cowan, Simon & Vickers, John, 1995. "Nonlinear pricing and price cap regulation," Journal of Public Economics, Elsevier, vol. 58(1), pages 33-55, September.
    14. Ricardo GONCALVES & Álvaro NASCIMENTO, 2013. "Next Generation Access Networks: The Post-Investment Conundrum," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(92), pages 91-112, 4th quart.
    15. Egerer, Jonas & Rosellón, Juan & Schill, Wolf-Peter, 2015. "Power System Transformation toward Renewables: An Evaluation of Regulatory Approaches for Network Expansion," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 36(4), pages 105-128.
    16. Inderst, Roman & Peitz, Martin, 2012. "Network investment, access and competition," Telecommunications Policy, Elsevier, vol. 36(5), pages 407-418.
    17. Joan Calzada, 2007. "Capacity-based versus time-based access charges in telecommunications," Journal of Regulatory Economics, Springer, vol. 32(2), pages 153-172, October.
    18. David Besanko & Shana Cui, 2019. "Regulated versus negotiated access pricing in vertically separated railway systems," Journal of Regulatory Economics, Springer, vol. 55(1), pages 1-32, February.
    19. Paul Bijl & Martin Peitz, 2009. "Access regulation and the adoption of VoIP," Journal of Regulatory Economics, Springer, vol. 35(2), pages 111-134, April.
    20. Ben Dkhil, Inès, 2014. "Competition in the Fixed Telecommunication Market Segment: Challenges and Theories," MPRA Paper 72909, University Library of Munich, Germany.

    More about this item

    Keywords

    Advertising; price-regulation; welfare;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:diw:diwvjh:78-3-12. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bibliothek (email available below). General contact details of provider: https://edirc.repec.org/data/diwbede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.