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Parity Pricing and Its Critics: Necessary Condition for Efficiency in Provision of Bottleneck Services to Competitors

Author

Listed:
  • Baumol, W,
  • Ordover, J.
  • Willig, R.

Abstract

The paper will show tha bottleneck input service sold by its owner to competitors in the supply of final product must be priced in accord with ECPR if ineffeciency in resource allocation is to be prevented.

Suggested Citation

  • Baumol, W, & Ordover, J. & Willig, R., 1996. "Parity Pricing and Its Critics: Necessary Condition for Efficiency in Provision of Bottleneck Services to Competitors," Working Papers 96-33, C.V. Starr Center for Applied Economics, New York University.
  • Handle: RePEc:cvs:starer:96-33
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    Citations

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    Cited by:

    1. Christine Brandstätt & Gert Brunekreeft & Nele Friedrichsen, 2013. "The Need for More Flexibility in the Regulation of Smart Grids – Stakeholder Involvement," Bremen Energy Working Papers 0013, Bremen Energy Research.
    2. 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.
    3. repec:sbe:breart:v:20:y:2000:i:1:a:2776 is not listed on IDEAS
    4. Brunekreeft, Gert, 2001. "Regulation and third-party discrimination in vertically related markets: The case of German electricity," Discussion Papers 74 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    5. Gert Brunekreeft, 2002. "Regulation and Third-Party Discrimination in the German Electricity Supply Industry," European Journal of Law and Economics, Springer, vol. 13(3), pages 203-220, May.

    More about this item

    Keywords

    PRICING; COMPETITION; MONOPOLIES;

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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