Access charges and quality choice in competing networks
We study the impact of reciprocal access charges on the incentives to invest in networks of higher quality. We show how private and social preferences always diverge once investments are endogenized. Private negotiations never lead to charges being set at their marginal cost. Whether or not marginal...
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| Veröffentlicht in: | Information economics and policy 2004-09, Vol.16 (3), p.391-409 |
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| container_title | Information economics and policy |
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| creator | Cambini, Carlo Valletti, Tommaso M. |
| description | We study the impact of reciprocal access charges on the incentives to invest in networks of higher quality. We show how private and social preferences always diverge once investments are endogenized. Private negotiations never lead to charges being set at their marginal cost. Whether or not marginal cost charges have good dynamic properties depends on the way investments in quality impact on traffic generated on the networks. |
| doi_str_mv | 10.1016/j.infoecopol.2004.01.007 |
| format | Article |
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| fulltext | fulltext |
| identifier | ISSN: 0167-6245 |
| ispartof | Information economics and policy, 2004-09, Vol.16 (3), p.391-409 |
| issn | 0167-6245 1873-5975 |
| language | eng |
| recordid | cdi_proquest_miscellaneous_37981214 |
| source | RePEc; Elsevier ScienceDirect Journals Complete; PAIS Index |
| subjects | Access charges Competition Interconnection Investment Investments Networks Policy studies Pricing policies Quality Quality standards Telecommunications Telecommunications industry |
| title | Access charges and quality choice in competing networks |
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