IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-02l50001.html
   My bibliography  Save this article

Ramsey pricing in one-way and two-way interconnection between telephone networks

Author

Listed:
  • Seonghoon Jeon

    (Sogang University)

Abstract

I derive Ramsey optimal prices in one-way access of long-distance operators and enhanced service providers to local loops. As long-distance services and enhanced services become substitutes due to the advance of Internet telephony, the Ramsey principle requires higher access charges assessed on both services. I also derive Ramsey prices in two-way interconnection between fixed-link and mobile phone networks, which turn out to be formally equivalent to those for the one-way access above. This result suggests that the price of fixed-to-mobile calls should be higher than the price of mobile-to-fixed calls when the substitutability of calls to double subscribers is more prominent than the substitutability of calls of double subscribers, and vice versa.

Suggested Citation

  • Seonghoon Jeon, 2002. "Ramsey pricing in one-way and two-way interconnection between telephone networks," Economics Bulletin, AccessEcon, vol. 12(3), pages 1-9.
    • Handle: RePEc:ebl:ecbull:eb-02l50001
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/pubs/EB/2002/Volume12/EB-02L50001A.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Laffont, Jean-Jacques & Tirole, Jean, 1996. "Creating Competition through Interconnection: Theory and Practice," Journal of Regulatory Economics, Springer, vol. 10(3), pages 227-256, November.
    2. Jean-Jacques Laffont & Jean Tirole, 2001. "Competition in Telecommunications," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262621509, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. de Bijl, P.W.J. & Brunekreeft, G. & van Damme, E.E.C. & Larouche, P. & Shelkoplyas, N. & Sorana, V., 2004. "Interconnected Networks," Other publications TiSEM 10a647e2-6c24-4b98-8005-e, Tilburg University, School of Economics and Management.
      • de Bijl, P.W.J. & Brunekreeft, G. & van Damme, E.E.C. & Larouche, P. & Shelkoplyas, N. & Sorana, V., 2005. "Interconnected Networks," Other publications TiSEM 2fe44772-cc8d-4be2-aff4-3, Tilburg University, School of Economics and Management.
      • de Bijl, P.W.J. & Brunekreeft, G. & van Damme, E.E.C. & Larouche, P. & Shelkoplyas, N. & Sorana, V., 2005. "Interconnected Networks," Discussion Paper 2005-007, Tilburg University, Tilburg Law and Economic Center.
    2. 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.

    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. Kotakorpi, Kaisa, 2002. "Access Pricing and Competition in Telecommunications," Discussion Papers 283, VATT Institute for Economic Research.
    2. Jan Bouckaert & Frank Verboven, 2004. "Price Squeezes in a Regulatory Environment," Journal of Regulatory Economics, Springer, vol. 26(3), pages 321-351, August.
    3. Carlo Cambini & Piercarlo Ravazzi & Tommaso Valletti, 2000. "La tariffazione dell'accesso nelle telecomunicazioni: principi economici e interventi regolatori in alcuni paesi industrializzati," ICER Working Papers 10-2000, ICER - International Centre for Economic Research.
    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. E. Villemeur & Helmuth Cremer & Bernard Roy & Joëlle Toledano, 2007. "Worksharing, access and bypass: the structure of prices in the postal sector," Journal of Regulatory Economics, Springer, vol. 32(1), pages 67-85, August.
    6. Leslie Bravo Chew & Luis Fernando Gamboa, 2006. "Subsidios cruzados: el caso del sector postal," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 8(15), pages 251-268, July-Dece.
    7. Riechmann, Christoph, 2000. "Strategic pricing of grid access under partial price-caps -- electricity distribution in England and Wales," Energy Economics, Elsevier, vol. 22(2), pages 187-207, April.
    8. Rodriguez, M. M. & Chyong, C. K. & Fitzgerald, T. & Martínez, M. V., 2025. "Pipeline Regulation for Hydrogen: Choosing Between Paths and Networks," Cambridge Working Papers in Economics 2540, Faculty of Economics, University of Cambridge.
    9. Muñoz-Acevedo, Ángela & Grzybowski, Lukasz, 2023. "Impact of roaming regulation on revenues and prices of mobile operators in the EU," International Journal of Industrial Organization, Elsevier, vol. 89(C).
    10. Bassanini, Anna & Pouyet, Jerome, 2005. "Strategic choice of financing systems in regulated and interconnected industries," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 233-259, February.
    11. Steffen Hoernig, 2006. "Should uniform pricing constraints be imposed on entrants?," Journal of Regulatory Economics, Springer, vol. 30(2), pages 199-216, August.
    12. Gual, Jordi, 2003. "Market Definition in the Telecoms Industry," CEPR Discussion Papers 3988, C.E.P.R. Discussion Papers.
    13. Antonio Estache & Marco Manacorda & Tommaso M. Valletti, 2002. "Telecommunications Reform, Access Regulation, and Internet Adoption in Latin America," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 153-218.
    14. Marcel Canoy & Paul de Bijl & Ron Kemp, 2004. "Access to telecommunications networks," Chapters, in: Pierre A. Buigues & Patrick Rey (ed.), The Economics of Antitrust and Regulation in Telecommunications, chapter 8, Edward Elgar Publishing.
    15. Fink, Carsten & Mattoo, Aaditya & Rathindran, Randeep, 2001. "Liberalizing basic telecommunications : the Asian experience," Policy Research Working Paper Series 2718, The World Bank.
    16. Lewis, Tracy R. & Sappington, David E. M., 1999. "Access pricing with unregulated downstream competition," Information Economics and Policy, Elsevier, vol. 11(1), pages 73-100, March.
    17. Ronald Fischer & Pablo Serra, 2004. "Efectos de la privatización de servicios públicos en Chile: Casos sanitario, electricidad y telecomunicaciones (Effects of privatization on public services in Chile: The case of the sanitary, electric," Documentos de Trabajo 186, Centro de Economía Aplicada, Universidad de Chile.
    18. repec:kap:iaecre:v:17:y:2011:i:4:p:465-475 is not listed on IDEAS
    19. Jullien Bruno & Pouyet Jerome & Sand-Zantman Wilfried, 2010. "Public and Private Investments in Regulated Network Industries: Coordination and Competition Issues," Review of Network Economics, De Gruyter, vol. 9(4), pages 1-22, December.
    20. Grout, Paul A. & Park, In-Uck, 2004. "Promoting competition in the presence of essential facilities," International Journal of Industrial Organization, Elsevier, vol. 22(10), pages 1415-1441, December.
    21. Finch, John & Geiger, Susi & Reid, Emma, 2017. "Captured by technology? How material agency sustains interaction between regulators and industry actors," Research Policy, Elsevier, vol. 46(1), pages 160-170.

    More about this item

    JEL classification:

    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities

    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:ebl:ecbull:eb-02l50001. 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: John P. Conley (email available below). General contact details of provider: .

    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.