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Open access policies, regulated charges and non-price discrimination in telecommunications

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  • Mattos, César

Abstract

Open access policies in telecommunications, including interconnection and unbundling, are implemented by regulators in an effort to increase competition in the sector. Lack of cooperation from incumbents is pervasive, given their incentives to engage in non-price discrimination and the moral hazard resulting from the inability of regulators to monitor the contract. We build a relationship between the access price and non-price discrimination, neither assuming a pre-determined market strategic interdependence or a specific demand function format. When the access charge is liberalized, the incentive for non-price discrimination disappears. It may be optimal for the regulator to set a second-best regulated access price to avoid non-price discrimination.

Suggested Citation

  • Mattos, César, 2009. "Open access policies, regulated charges and non-price discrimination in telecommunications," Information Economics and Policy, Elsevier, vol. 21(4), pages 253-260, November.
  • Handle: RePEc:eee:iepoli:v:21:y:2009:i:4:p:253-260
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    References listed on IDEAS

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    1. Mandy, David M, 2000. "Killing the Goose That May Have Laid the Golden Egg: Only the Data Know Whether Sabotage Pays," Journal of Regulatory Economics, Springer, vol. 17(2), pages 157-172, March.
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    7. Weisman, Dennis L & Kang, Jaesung, 2001. "Incentives for Discrimination when Upstream Monopolists Participate in Downstream Markets," Journal of Regulatory Economics, Springer, vol. 20(2), pages 125-139, September.
    8. Mini, Federico, 2001. "The Role of Incentives for Opening Monopoly Markets: Comparing GTE and BOC Cooperation with Local Entrants," Journal of Industrial Economics, Wiley Blackwell, vol. 49(3), pages 379-414, September.
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    10. Bourreau, Marc & Dogan, Pinar, 2004. "Service-based vs. facility-based competition in local access networks," Information Economics and Policy, Elsevier, vol. 16(2), pages 287-306, June.
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    12. repec:sbe:breart:v:22:y:2002:i:1:a:2744 is not listed on IDEAS
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    Cited by:

    1. Debashis Pal & David Sappington & Ying Tang, 2012. "Sabotaging cost containment," Journal of Regulatory Economics, Springer, vol. 41(3), pages 293-314, June.
    2. Vogelsang Ingo, 2013. "The Endgame of Telecommunications Policy? A Survey," Review of Economics, De Gruyter, vol. 64(3), pages 193-270, December.

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