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A retail benchmarking approach to efficient two-way access pricing

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dc.contributor.author Jeon, Doh-Shin
dc.contributor.author Hurkens, Sjaak
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.accessioned 2017-07-26T10:50:36Z
dc.date.available 2017-07-26T10:50:36Z
dc.date.issued 2007-10-01
dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1055
dc.identifier.uri http://hdl.handle.net/10230/940
dc.description.abstract We study a retail benchmarking approach to determine access prices for interconnected networks. Instead of considering fixed access charges as in the existing literature, we study access pricing rules that determine the access price that network i pays to network j as a linear function of the marginal costs and the retail prices set by both networks. In the case of competition in linear prices, we show that there is a unique linear rule that implements the Ramsey outcome as the unique equilibrium, independently of the underlying demand conditions. In the case of competition in two-part tariffs, we consider a class of access pricing rules, similar to the optimal one under linear prices but based on average retail prices. We show that firms choose the variable price equal to the marginal cost under this class of rules. Therefore, the regulator (or the competition authority) can choose one among the rules to pursue additional objectives such as consumer surplus, network coverage or investment: for instance, we show that both static and dynamic e±ciency can be achieved at the same time.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 1055
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 retail benchmarking approach to efficient two-way access pricing
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2017-07-23T02:11:28Z
dc.subject.keyword networks
dc.subject.keyword access pricing
dc.subject.keyword interconnection
dc.subject.keyword competition policy
dc.subject.keyword telecommunications
dc.subject.keyword investment
dc.subject.keyword Microeconomics
dc.rights.accessRights info:eu-repo/semantics/openAccess


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