A simple access pricing rule to achieve the Ramsey outcome for interconnected networks

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Jeon, Doh-Shin. A simple access pricing rule to achieve the Ramsey outcome for interconnected networks. 2005
http://hdl.handle.net/10230/816
To cite or link this document: http://hdl.handle.net/10230/816
dc.contributor.author Jeon, Doh-Shin
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.issued 2005-02-01
dc.identifier.uri http://hdl.handle.net/10230/816
dc.description.abstract This paper considers a general and informationally efficient approach to determine the optimal access pricing rule for interconnected networks. It shows that there exists a simple rule that achieves the Ramsey outcome as the unique equilibrium when networks compete in linear prices without network-based price discrimination. The approach is informationally efficient in the sense that the regulator is required to know only the marginal cost structure, i.e. the marginal cost of making and terminating a call. The approach is general in that access prices can depend not only on the marginal costs but also on the retail prices, which can be observed by consumers and therefore by the regulator as well. In particular, I consider the set of linear access pricing rules which includes any fixed access price, the Efficient Component Pricing Rule (ECPR) and the Modified ECPR as special cases. I show that in this set, there is a unique rule that implements the Ramsey outcome as the unique equilibrium independently of the underlying demand conditions.
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 808
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title A simple access pricing rule to achieve the Ramsey outcome for interconnected networks
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2014-06-03T07:14:12Z
dc.subject.keyword Microeconomics
dc.subject.keyword networks
dc.subject.keyword access pricing
dc.subject.keyword interconnection
dc.subject.keyword competition policy
dc.rights.accessRights info:eu-repo/semantics/openAccess


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