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Access Pricing: Theory and Practice - download pdf or read online

By Ralf Dewenter, Justus Haucap

ISBN-10: 0080464467

ISBN-13: 9780080464466

ISBN-10: 0444528032

ISBN-13: 9780444528032

Entry to crucial amenities or so-called bottlenecks has develop into the major public coverage factor for the liberalization of community industries akin to telecommunications, electrical energy, rail and so forth. nonetheless, entry costs are usually not in simple terms vital for pageant in previously monopolistic industries, but in addition for industries the place pageant has lengthy been verified similar to money and bank card networks or cellular telecommunications. because the latter industries have additionally come lower than nearer scrutiny by means of regulatory companies and pageant gurus, this ebook is devoted to the research of entry pricing in thought and perform. The constitution of this publication that is prepared in 5 components is as follows: The prolonged creation will introduce the most important strategies and concerns together with a short clarification of the basic facility idea in addition to the excellence among one-way and two-way entry and may in short survey the most contributions in the literature on entry pricing concept and perform. whereas elements I and II take care of the idea of one-way and two-way entry pricing, respectively, half III makes a speciality of the newly rising conception of entry pricing with multihoming. components IV and V tackle the perform part and concentrate on industry-specific functions and distinct difficulties (Part IV) in addition to public coverage matters (Part V). This publication offers worthwhile theoretical and empirical analyses in entry Pricing and comparable themes. It bargains numerous diverse issues of view. It positive aspects study from hugely reputed scientists operating during this box.

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Extra resources for Access Pricing: Theory and Practice

Example text

As Alexandre de Streel outlines a prerequisite for sector-specific regulation is the existence of SMP. Once an operator has been designated to have SMP, the operator can be obliged to grant access. This includes all types of essential facilities, for example, fixed-line and 32 Ralf Dewenter and Justus Haucap wireless networks as well as physical and non-physical infrastructure. In these cases, different methods of access price regulation can be imposed. In his analysis of the relationship between competition policy and regulation, Alexandre de Streel argues that regulation can no longer be seen as independent from competition law, but as ‘a part of a broader set of tools based on competition analysis principles’.

TELRIC has been introduced by the Federal Communications Commission (FCC) in connection with the US 1996 Telecommunications Act. Compared to TSLRIC the advantage of TELRIC is that with an element-based approach there are typically less common costs than considering products or services. , Belfin and Lukanowicz, 1999), this only holds if rather special and unrealistic assumptions are met. , Hausman, 1999, 2001). For example, economies of scale and scope must not exist, which, of course, almost never holds for essential facilities.

Again, the results depend on the firms’ symmetry: if only one firm can invest, access prices should be set so as to secure both investment and access. This is achieved through cost-sharing – each firm bears the costs proportionally to its profit share, which means that the optimal fixed access fee is proportional to the ratio between the non-investing firm’s profit and total industry profits. , symmetric) firms compete in the market, both firms should pay, in the social optimum, the same fixed access fee so that they both carry the same share of the total infrastructure cost.

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Access Pricing: Theory and Practice by Ralf Dewenter, Justus Haucap


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