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When Should an Incumbent be Obliged to Share its Infrastructure with an Entrant Under the General Competition Rules?

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  • Mats Bergman

Abstract

According to the essential-facilities doctrine, competition law requires an infrastructural monopoly to provide access. Under the “Bronner criterion”, proposed by the EC Court, the doctrine is only applicable when a symmetric infrastructural duopoly is non-viable. This paper uses a simple model to illustrate that, from a welfare point-of-view, the Bronner criterion may provide too little monopoly protection for the incumbent in high-risk new markets, while requiring too much investments from the entrant in low-risk mature markets. Copyright Springer Science Business Media, Inc. 2005

Suggested Citation

  • Mats Bergman, 2005. "When Should an Incumbent be Obliged to Share its Infrastructure with an Entrant Under the General Competition Rules?," Journal of Industry, Competition and Trade, Springer, vol. 5(1), pages 5-26, January.
    • Handle: RePEc:kap:jincot:v:5:y:2005:i:1:p:5-26
    DOI: 10.1007/s10842-005-0990-7
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    References listed on IDEAS

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    1. Gans, Joshua S, 2001. "Regulating Private Infrastructure Investment: Optimal Pricing for Access to Essential Facilities," Journal of Regulatory Economics, Springer, vol. 20(2), pages 167-189, September.
    2. 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.
    3. Bergman, Mats A., 1998. "Endogenous Timing of Investments Yields Modified Stackelberg Outcomes," SSE/EFI Working Paper Series in Economics and Finance 272, Stockholm School of Economics.
    4. Armstrong, Mark, 2001. "The theory of access pricing and interconnection," MPRA Paper 15608, University Library of Munich, Germany.
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    Cited by:

    1. Foros, Øystein & Kind, Hans Jarle & Sand, Jan Yngve, 2009. "Entry may increase network providers' profit," Telecommunications Policy, Elsevier, vol. 33(9), pages 486-494, October.

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