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Author:Curien, N.
Jullien, B.
Rey, P.
Title:Pricing regulation under bypass competition
Journal:RAND Journal of Economics
1998 : SUMMER, VOL. 29:2, p. 259-179
Index terms:PRICING
REGULATIONS
COMPETITION
Freeterms:BYPASS COMPETITION
Language:eng
Abstract:This study analyzes optimal prising policies in local telecomunications subject to bypass for access of long-distance carriers. The study first considers a case of a regulated monopoly that operates the local network and has access to an additional technology more efficient for large customers. Then it is studied how competition in bypass affects the optimal nonlinear pricing policy and the resulting allocation. When transfers are allowed between the regulator and the network operator, bypass competition benefits consumers at the expense of the taxpayers, otherwise it benefits large consumers and hurt small consumers.
SCIMA record nr: 178733
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