Ex Post Regulation Facilitates Collusion

Patrick Frank Ernst Beschorner

No 08-099, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: Under ex ante access regulation entrants often claim that access fees are excessive. I show that this is only the case if further entry is admitted. If the entrant is protected from further entry it would agree with the incumbent upon a strictly positive access fee which may exceed the efficient level. Ex post regulation facilitates this type of collusion and should be abandoned.

Keywords: entry deterrence; access regulation; network infrastructure; vertical differentiation (search for similar items in EconPapers)
JEL-codes: K21 K23 L42 L51 (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-com, nep-ind, nep-law, nep-mic and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:7473

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