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Author:Estache, A.
Laffont, J.
Zhang, X.
Title:Universal service obligations in LDCs: the effect of uniform pricing on infrastructure access
Journal:Journal of Public Economics
2006 : AUG, VOL. 90:6-7, p. 1155-1179
Index terms:asymmetric information
economics
pricing
Language:eng
Abstract:In this article, the authors develop a model to examine the effect of asymmetric information on optimal universal service policy in the public utilities of developing countries. The results of the study show that under discriminatory pricing, asymmetric information leads to a higher price and smaller network in the rural area than under full information.
SCIMA record nr: 261442
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