Broadband Investment and the Threat of Regulation: Preventing Monopoly Exploitation or Infrastructure Construction?
Ulrich Blum (),
Christian Growitsch () and
Krap Niels ()
Additional contact information
Krap Niels: Halle Institute for Economic Research
Review of Network Economics, 2007, vol. 6, issue 3, 1-13
Recently, investments in new generation networks in Germany have been curtailed, since potential investors required this new network be unregulated. To develop a regulator's strategy that allows investments to occur but prevents monopolistic prices, we model an investor's decision problem under a threat of regulation. We show that the mere threat of a regulator's intervention may prevent supernormal profits without actual price regulation. The regulator, on the other hand, can influence both the investment decision and the investor's price via her signals on regulation probability and price.
References: Add references at CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
For access to full text, subscription to the journal or payment for the individual article is required.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bpj:rneart:v:6:y:2007:i:3:n:5
Ordering information: This journal article can be ordered from
Access Statistics for this article
Review of Network Economics is currently edited by Lukasz Grzybowski
More articles in Review of Network Economics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().