Public and Private Investments in Regulated Network Industries: Coordination and Competition Issues
This paper analyzes the relationship between a national regulator, an incumbent and a local government in a context where investment in a new network has to be undertaken. In the light of the recent debates on the competition between private firms and local governments, we analyze the limits to be put on the local public intervention in these markets. We show that banning local government intervention can be welfare-enhancing either in the presence inter-districts externality or with asymmetric information or in case of conflicting objectives between the regulator and local governments.
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|Date of creation:||Jul 2009|
|Date of revision:|
|Publication status:||Published in The Review of Network Economics, vol. 9, n°4, 2010.|
|Contact details of provider:|| Phone: (+33) 5 61 12 86 23|
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- Jullien, Bruno & Pouyet, Jérôme & Sand-Zantman, Wilfried, 2009.
"Contracting and Regulation under the Threat of Duplication,"
TSE Working Papers
09-071, Toulouse School of Economics (TSE).
- Jullien, Bruno & Pouyet, Jérôme & Sand-Zantman, Wilfried, 2009. "Contracting and Regulation under the Threat of Duplication," IDEI Working Papers 563, Institut d'Économie Industrielle (IDEI), Toulouse.
- Caillaud, Bernard & Tirole, Jean, 2004.
"Essential facility financing and market structure,"
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- Jean-Jacques Laffont & Jean Tirole, 2001. "Competition in Telecommunications," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262621509, June.
- Jamison Mark A & Sichter James, 2010. "Business Separation in Telecommunications: Lessons from the U.S. Experience," Review of Network Economics, De Gruyter, vol. 9(1), pages 1-27, February.
- Gillett, Sharon E. & Lehr, William H. & Osorio, Carlos, 0. "Local government broadband initiatives," Telecommunications Policy, Elsevier, vol. 28(7-8), pages 537-558, August.
- Hauge, Janice A. & Jamison, Mark A. & Gentry, Richard J., 2008. "Bureaucrats as entrepreneurs: Do municipal telecommunications providers hinder private entrepreneurs," Information Economics and Policy, Elsevier, vol. 20(1), pages 89-102, March.
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