EconPapers    
Economics at your fingertips  
 

The access regulation and investment in quality

Gokce Kurucu and Ismail Saglam

International Journal of Management and Network Economics, 2009, vol. 1, issue 3, 261-274

Abstract: This paper investigates the impact of access price regulation on the quality of service provided in regions with different demand structures. We investigate the incumbent firm's incentives for quality investment when there is a Bertrand competition between the entrant and the incumbent and in the case of tacit collusion where the entrant and incumbent are monopolies in different regions. We show that the optimal quality decision depends on the responsiveness of demand to quality, i.e., the quality elasticity of demand, as well as the price elasticity of demand in a specific region. Additionally, the effects of population size on the optimal price quality pair are shaped by the relationship between the size of population and the price and quality elasticities in that region.

Keywords: quality investment; access pricing; network industries; price regulation; quality of service; QoS; elasticity of demand; population size; regional demand. (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.inderscience.com/link.php?id=30591 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijmnec:v:1:y:2009:i:3:p:261-274

Access Statistics for this article

More articles in International Journal of Management and Network Economics from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().

 
Page updated 2022-09-05
Handle: RePEc:ids:ijmnec:v:1:y:2009:i:3:p:261-274