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On the nature of price competition under universal service obligations: a note

Author

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  • GAUTIER, Axel

    (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))

  • WAUTHY, Xavier

    (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))

Abstract

The imposition of universal coverage and uniform pricing constraints, as part of the universal service obligations, makes the universal service provider less aggressive in the price game when it competes with a rm that does not cover the whole set of markets (Valletti et al., 2002). In this paper, we fully characterize the resulting price equilibrium when universal service obligations are imposed. With a limited market coverage by the entrant or a small degree of degree of product di erentiation, the equilibrium is a mixed strategy one.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • GAUTIER, Axel & WAUTHY, Xavier, 2009. "On the nature of price competition under universal service obligations: a note," LIDAM Discussion Papers CORE 2009032, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2009032
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    File URL: https://sites.uclouvain.be/core/publications/coredp/coredp2009.html
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    More about this item

    Keywords

    universal service obligations; uniform pricing; price competition;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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