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Competition in Communication Networks: Pricing and Regulation

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  • Robin Mason
  • Tommaso M. Valletti

Abstract

By any measure, the communication sector is important. It is no surprise, then, that the communication sector has attracted the attention of both policy-makers and economists. In this paper, we argue that four characteristics of the networks that deliver communication services make this area of particular interest. We analyse the implications of networks' cost structures; the strong complementarity between their components; the demand-side externalities that arise from consumption of their services; and the social obligations attached to them. Despite the attention that the communication sector has received, many aspects of competition between networks are still poorly understood. We identify some of the key issues that will continue to trouble regulators and interest academics. Copyright 2001, Oxford University Press.

Suggested Citation

  • Robin Mason & Tommaso M. Valletti, 2001. "Competition in Communication Networks: Pricing and Regulation," Oxford Review of Economic Policy, Oxford University Press, vol. 17(3), pages 389-415.
  • Handle: RePEc:oup:oxford:v:17:y:2001:i:3:p:389-415
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    Citations

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    Cited by:

    1. Wilko Bolt & David B. Humphrey, 2005. "Public Good Aspects of TARGET: Natural Monopoly, Scale Economies, and Cost Allocation," DNB Working Papers 036, Netherlands Central Bank, Research Department.
    2. Machiel van Dijk & Bert Minne & Machiel Mulder & Henry van der Wiel & J. Poort, 2005. "Do market failures hamper the perspectives of broadband?," CPB Document 102, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Joan Calzada & Francesc Trillas, 2005. "The interconnection prices in telecomunications: from theory to practice," Hacienda Pública Española, IEF, vol. 173(2), pages 85-125, June.
    4. Kang Sawoong, 2011. "Mandating Wholesale Provisions with the Retail-minus Regulation in Mobile Telecommunications," Asian Journal of Law and Economics, De Gruyter, vol. 2(3), pages 1-27, October.
    5. Genakos, Christos & Valletti, Tommaso, 2012. "Regulating prices in two-sided markets: The waterbed experience in mobile telephony," Telecommunications Policy, Elsevier, vol. 36(5), pages 360-368.
    6. Kari Kemppainen, 2004. "Competition and regulation in European retail payment systems," Microeconomics 0404008, EconWPA.
    7. Kemppainen, Kari, 2005. "Assessing effects of price regulation in retail payment systems," Research Discussion Papers 19/2005, Bank of Finland.
    8. Kemppainen, Kari, 2003. "Competition and regulation in European retail payment systems," Research Discussion Papers 16/2003, Bank of Finland.
    9. Ben Dkhil, Inès, 2014. "Competition in the Fixed Telecommunication Market Segment: Challenges and Theories," MPRA Paper 72909, University Library of Munich, Germany.
    10. Bolt, Wilko & Humphrey, David, 2005. "Public good issues in TARGET: natural monopoly, scale economies, network effects and cost allocation," Working Paper Series 505, European Central Bank.
    11. Pekka Sääskilahti, 2015. "Monopoly Pricing of Social Goods," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 22(3), pages 429-448, November.
    12. Steffen H. Hoernig & Tommaso M. Valletti, 2002. "The Interplay Between Regulation and Competitions: The Case of Universal Service Obligations," CESifo Working Paper Series 682, CESifo Group Munich.

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