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Endogenous financing of the universal service

  • Losada, Ramiro
  • Ilie, Laura

We address the question of endogenous financing of the Universal Service Obligations and we compare it with the exogenous financing. A fund is created and fed through a tax firms pay. We show that the way these funds are implemented by the current regulatory regimes at work goes against the social welfare. We propose a new way of implementing the fund that improves welfare. Moreover, we challenge the proportionality payment principle as it leads to lower welfare.

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File URL: http://e-archivo.uc3m.es/bitstream/handle/10016/324/we044116.pdf?sequence=1
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Paper provided by Universidad Carlos III de Madrid. Departamento de Economía in its series UC3M Working papers. Economics with number we044116.

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Date of creation: Jul 2004
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Handle: RePEc:cte:werepe:we044116
Contact details of provider: Web page: http://www.eco.uc3m.es/

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  1. Das Varma, Gopal, 2003. "Bidding for a process innovation under alternative modes of competition," International Journal of Industrial Organization, Elsevier, vol. 21(1), pages 15-37, January.
  2. Anton, James J. & Vander Weide, James H. & Vettas, Nikolaos, 2002. "Entry auctions and strategic behavior under cross-market price constraints," International Journal of Industrial Organization, Elsevier, vol. 20(5), pages 611-629, May.
  3. Anne Perrot & Laurent Flochel & Philippe Choné, 2000. "Universal service obligations and competition," Post-Print halshs-00144073, HAL.
  4. Paul Klemperer, 1999. "Auction Theory: A Guide to the Literature," Economics Series Working Papers 1999-W12, University of Oxford, Department of Economics.
  5. Sorana, Valter, 2000. "Auctions for Universal Service Subsidies," Journal of Regulatory Economics, Springer, vol. 18(1), pages 33-58, July.
  6. Chone, Philippe & Flochel, Laurent & Perrot, Anne, 2002. "Allocating and funding universal service obligations in a competitive market," International Journal of Industrial Organization, Elsevier, vol. 20(9), pages 1247-1276, November.
  7. Valletti, Tommaso M., 2000. "Introduction: Symposium on universal service obligation and competition," Information Economics and Policy, Elsevier, vol. 12(3), pages 205-210, September.
  8. Jean-Jacques Laffont & Jean Tirole, 2001. "Competition in Telecommunications," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262621509, March.
  9. Caillaud, Bernard & Tirole, Jean, 2001. "Essential Facility Financing and Market Structure," CEPR Discussion Papers 2802, C.E.P.R. Discussion Papers.
  10. Gasmi, F. & Laffont, J. J. & Sharkey, W. W., 2000. "Competition, universal service and telecommunications policy in developing countries," Information Economics and Policy, Elsevier, vol. 12(3), pages 221-248, September.
  11. Philippe Chone & Laurent Flochel & Anne Perrot, 2000. "Allocating and Funding Universal Service Obligations in a Competitive Network Market," Econometric Society World Congress 2000 Contributed Papers 0213, Econometric Society.
  12. Paul R. Milgrom, 1985. "Auction Theory," Cowles Foundation Discussion Papers 779, Cowles Foundation for Research in Economics, Yale University.
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