 The competitive effects of resale versus facility-based entry: evidence from the long-distance marketDavid L. Kaserman and Marc Ulrich Telecommunications Policy, vol. 26, issue 7-8, 415-424 Abstract: This paper examines the ability of entry by either resellers or facilities-based carriers to discipline the pricing behavior of a vertically integrated incumbent supplier. Theoretical considerations suggest that, once a sufficient amount of entry has occurred at both vertical stages--transmission and retail functions--additional entry at either stage can push final output toward the competitive level. Under these conditions, entry at either stage may serve as a gross complement or substitute for entry at the other stage. Data from the interLATA telecommunications market are used to test the relevant hypotheses. Our findings are not expected to be directly applicable to the local exchange and electricity markets as those markets are currently constituted. When these industries begin to exhibit structural characteristics that resemble the long-distance market, however, our findings should become relevant there as well. Keywords: Resale; Facilities-based; InterLATA (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:telpol:v:26:y::i:7-8:p:415-424 Ordering information: This journal article can be ordered from Access Statistics for this article Telecommunications Policy is currently edited by Erik Bohlin More articles in Telecommunications Policy from Elsevier |
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