Bill-and-Keep vs. Cost-Based Access Pricing Revisited
We study network competition with two-part tariffs and termination-based price discrimination in the presence of call externalities. We show that both the collusive and the welfare maximizing access charges fall below marginal cost. Moreover, bill-and-keep arrangements are welfare improving compared with cost-based access pricing.
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.:
- Gans, J.S. & King, S.P., 2000.
"Using 'Bill and Keep' Interconnect Arrangements to Soften Network Competiti on,"
Department of Economics - Working Papers Series
739, The University of Melbourne.
- Gans, Joshua S. & King, Stephen P., 2001. "Using 'bill and keep' interconnect arrangements to soften network competition," Economics Letters, Elsevier, vol. 71(3), pages 413-420, June.
- Ulrich Berger, 2004. "Access Charges in the Presence of Call Externalities," Industrial Organization 0408009, EconWPA, revised 31 Aug 2004.
- Kim, Jeong-Yoo & Lim, Yoonsung, 2001.
"An economic analysis of the receiver pays principle,"
Information Economics and Policy,
Elsevier, vol. 13(2), pages 231-260, June.
- Jeong-Yoo Kim & Yoonsung Lim, 2000. "An Economic Analysis of the Receiver Pays Principle," Econometric Society World Congress 2000 Contributed Papers 0334, Econometric Society.
- Jong-Hee Hahn, 2000.
"Nonlinear Pricing of Telecommunications with Call and Network Externalities,"
Keele Department of Economics Discussion Papers (1995-2001)
2000/15, Department of Economics, Keele University, revised Nov 2001.
- Hahn, Jong-Hee, 2003. "Nonlinear pricing of telecommunications with call and network externalities," International Journal of Industrial Organization, Elsevier, vol. 21(7), pages 949-967, September.
- Doh-Shin Jeon & Jean-Jacques Laffont & Jean Tirole, 2004.
"On the Receiver-Pays Principle,"
RAND Journal of Economics,
The RAND Corporation, vol. 35(1), pages 85-110, Spring.
- Armstrong, Mark, 1998. "Network Interconnection in Telecommunications," Economic Journal, Royal Economic Society, vol. 108(448), pages 545-64, May.
- Armstrong, Mark, 2001. "The theory of access pricing and interconnection," MPRA Paper 15608, University Library of Munich, Germany.
- Berger Ulrich, 2005. "Access Charges in the Presence of Call Externalities," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(1), pages 1-18, January.
- Cambini, Carlo & Valletti, Tommaso M., 2003. "Network competition with price discrimination: 'bill-and-keep' is not so bad after all," Economics Letters, Elsevier, vol. 81(2), pages 205-213, November.
- Patrick Degraba, 2003. "Efficient Intercarrier Compensation for Competing Networks When Customers Share the Value of A Call," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 12(2), pages 207-230, 06.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpio:0408002. 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: (EconWPA)
If references are entirely missing, you can add them using this form.