Strategic Regulation Policy in the Internet

Øystein Foros, Hans Jarle Kind and Lars Søard ()

Journal of Regulatory Economics, 2006, vol. 30, issue 1, 63-84

Abstract: Some countries are importers while others are exporters of global backbone connectivity. At the same time, input components such as local access are non-traded. This paper analyzes a non-cooperative regulatory game between importing and exporting countries, assuming that the prices of both traded and non-traded inputs can be regulated. We show that exporting countries choose a more restrictive regulation of non-traded goods than importing countries do. We further show that a requirement of international non-discrimination may hurt importing countries, and give firms producing traded inputs incentives to invest in quality degradation. Copyright Springer Science+Business Media, LLC 2006

Keywords: Complementarities; Regulation; Non-discrimination; Internet; L13; L51; L96 (search for similar items in EconPapers)
Date: 2006
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DOI: 10.1007/s11149-006-0009-2

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