When Should an Incumbent be Obliged to Share its Infrastructure with an Entrant Under the General Competition Rules?
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
Volume (Year): 5 (2005)
Issue (Month): 1 (January)
|Contact details of provider:|| Web page: http://springer.com|
|Order Information:||Web: http://www.springer.com/economics/industrial+organization/journal/10842/PS2|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- 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.
- 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.
- Armstrong, Mark, 2001. "The theory of access pricing and interconnection," MPRA Paper 15608, University Library of Munich, Germany.
When requesting a correction, please mention this item's handle: RePEc:kap:jincot:v:5:y:2005:i:1:p:5-26. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.