Universal Service Obligations in LDCs: The Effect of Uniform Pricing on Infrastructure Access
This paper develops a model to analyze the impacts of asymmetric information on optimal universal service policy in the public utilities of developing countries. Optimal universal service policy is implemented using two regulatory instruments: pricing and network investment. Under discriminatory pricing asymmetric information leads to a higher price and smaller network in the rural area than under full information. Under uniform pricing the price is also lower but the network is even smaller. In addition, under both pricing regimes not only the firm but also taxpayers have incentives to collude with the regulator. © 2005 Elsevier B.V. All rights reserved.
|Date of creation:||Aug 2006|
|Date of revision:|
|Publication status:||Published in: Journal of public economics (2006) v.90 n° 6-7,p.1155-1179|
|Contact details of provider:|| Postal: |
Web page: http://difusion.ulb.ac.be
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- H. Cremer & F. Gasmi & A. Grimaud & J. J. Laffont, 2001. "Universal Service: An economic perspective," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 72(1), pages 5-43, 03.
- Omar Chisari & Antonio Estache & Catherine Waddams Price, 2003.
"Access by the poor in Latin America's utility reform: subsidies and service obligations,"
in: Utility Privatization and Regulation, chapter 2
- Antonio Estache & Omar Chisari & Catherine Waddams Price, 2003. "Access by the poor in Latin America's utility reform: Subsidies and service obligations," ULB Institutional Repository 2013/44068, ULB -- Universite Libre de Bruxelles.
- Chisari, Omar O. & Estache, Antonio & Waddams Price, Catherine, 2001. "Access by the Poor in Latin America's Utility Reform Subsidies and Service Obligations," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Laffont, Jean-Jacques & N'Gbo, Ake, 2000. "Cross-subsidies and network expansion in developing countries," European Economic Review, Elsevier, vol. 44(4-6), pages 797-805, May.
- Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, June.
- Clarke, George R.G. & Wallsten, Scott J., 2002. "Universal(ly bad) service - providing infrastructure services to rural and poor urban consumers," Policy Research Working Paper Series 2868, The World Bank.
- Eric Maskin, 1999. "Nash Equilibrium and Welfare Optimality," Review of Economic Studies, Oxford University Press, vol. 66(1), pages 23-38.
- Gasmi, Farid & Laffont, Jean-Jacques & Sharkey, William, 1999.
"Competition, Universal Service and Telecommunications Policy in Developing Countries,"
IDEI Working Papers
92, Institut d'Économie Industrielle (IDEI), Toulouse.
- 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.
When requesting a correction, please mention this item's handle: RePEc:ulb:ulbeco:2013/43913. 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: (Benoit Pauwels)
If references are entirely missing, you can add them using this form.