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Public and Private Investments in Regulated Network Industries: Coordination and Competition Issues

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  • Jullien, Bruno
  • Pouyet, Jérôme
  • Sand-Zantman, Wilfried

Abstract

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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Suggested Citation

  • Jullien, Bruno & Pouyet, Jérôme & Sand-Zantman, Wilfried, 2009. "Public and Private Investments in Regulated Network Industries: Coordination and Competition Issues," TSE Working Papers 09-072, Toulouse School of Economics (TSE).
  • Handle: RePEc:tse:wpaper:21953
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    References listed on IDEAS

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    1. Caillaud, Bernard & Tirole, Jean, 2004. "Essential facility financing and market structure," Journal of Public Economics, Elsevier, pages 667-694.
    2. Gillett, Sharon E. & Lehr, William H. & Osorio, Carlos, 0. "Local government broadband initiatives," Telecommunications Policy, Elsevier, pages 537-558.
    3. Jamison Mark A & Sichter James, 2010. "Business Separation in Telecommunications: Lessons from the U.S. Experience," Review of Network Economics, De Gruyter, pages 1-27.
    4. 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.
    5. Jean-Jacques Laffont & Jean Tirole, 2001. "Competition in Telecommunications," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262621509, January.
    6. Caillaud, Bernard & Tirole, Jean, 2004. "Essential facility financing and market structure," Journal of Public Economics, Elsevier, pages 667-694.
    7. 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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    Cited by:

    1. Dirk Czarnitzki & Christoph Grimpe & Maikel Pellens, 2015. "Access to research inputs: open science versus the entrepreneurial university," The Journal of Technology Transfer, Springer, vol. 40(6), pages 1050-1063, December.
    2. Briglauer Wolfgang & Frübing Stefan & Vogelsang Ingo, 2014. "The Impact of Alternative Public Policies on the Deployment of New Communications Infrastructure – A Survey," Review of Network Economics, De Gruyter, pages 227-270.
    3. 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.
    4. Montolio, Daniel & Trillas, Francesc, 2013. "Regulatory federalism and industrial policy in broadband telecommunications," Information Economics and Policy, Elsevier, vol. 25(1), pages 18-31.
    5. Kaiser, Ulrich & Méndez, Susan J., 2015. "How Do Drug Prices Respond to a Change from External to Internal Reference Pricing? Evidence from a Danish Regulatory Reform," IZA Discussion Papers 8759, Institute for the Study of Labor (IZA).
    6. Briglauer, Wolfgang & Holzleitner, Christian & Vogelsang, Ingo, 2016. "The need for more efficient public funding of new communications infrastructure in EU member states," Information Economics and Policy, Elsevier, vol. 36(C), pages 26-35.

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