IDEAS home Printed from https://ideas.repec.org/p/ris/uadewp/2001_013.html
   My bibliography  Save this paper

Network Competition and Network Regulation

Author

Listed:
  • Quesada, Lucía

    () (Université de Toulouse)

Abstract

The competitive structure of the telecommunication sector is changing all over the world. Competition is being introduced in the long-distance segments while the local markets remain in general under the control of a (group of) regulated monopolies. This paper tries to find the optimal regulation in the monopoly sector and the optimal access price, taking into account the effects of the competition between networks, any access price plays a role in that it allows the regulator to indirectly control prices in the unregulated segment. We show that, there is no loss of generality in making the access pcices for originating or terminating a call equal. Moreover, under complete information, if networks are poor substitutes, the optimal access price is lower than the marginal cost of access. Under asymmetric information, two effects work in opposite directions. On the one hand, access price is reduced with respect to marginal cost to induce a reduction in final price. On the other hand, access price is increased with respect to marginal cost to give incentives to reveal information.

Suggested Citation

  • Quesada, Lucía, 2001. "Network Competition and Network Regulation," UADE Working Papers 13_2001, Instituto de Economía, Universidad Argentina de la Empresa.
  • Handle: RePEc:ris:uadewp:2001_013
    as

    Download full text from publisher

    File URL: http://www.uade.edu.ar/DocsDownload/Publicaciones/4_228_1627_WPS013_2001.pdf
    File Function: Full text
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Romero, Carlos, 2010. "Servicio Universal en el proceso de privatización de las empresas de telecomunicaciones y agua potable y alcantarillado en el Paraguay," UADE Textos de Discusión 34_2001, Instituto de Economía, Universidad Argentina de la Empresa.
    2. Canay, Iván, 2002. "Eficiencia y Productividad en Distribuidoras Eléctricas: Repaso de la Metodología y Aplicación," UADE Textos de Discusión 35_2002, Instituto de Economía, Universidad Argentina de la Empresa.
    3. Ullberg, Susann, 2002. "El Apagón en Buenos Aires 1999 Manejo de crisis en los sectores privados y públicos en la Argentina," UADE Textos de Discusión 36_2002, Instituto de Economía, Universidad Argentina de la Empresa.

    More about this item

    Keywords

    telecommunication sector; regulated monopolies;

    JEL classification:

    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L90 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:uadewp:2001_013. 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: (Mariano E. Gonzalez). General contact details of provider: http://edirc.repec.org/data/ieuadar.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.