Auctions for Universal Service Subsidies
Journal of Regulatory Economics, 2000, vol. 18, issue 1, 33-58
The Telecommunications Act of 1996 requires that telephone service be available in high-cost areas at rates that are "affordable" and "reasonably comparable" to those charged in low-cost areas. It also requires that carriers serving high-cost areas at below-cost rates be compensated with explicit and sufficient subsidies. This paper analyzes an auction mechanism for the allocation of such subsidies. It shows that in a wide range of circumstances auctions are more efficient than traditional subsidy schemes. It also shows, however, that auction designs aimed at stimulating competition among several subsidized carriers may be particularly vulnerable to collusion. Copyright 2000 by Kluwer Academic Publishers
References: Add references at CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed
Downloads: (external link)
http://journals.kluweronline.com/issn/0922-680X/contents link to full text (text/html)
Access to full text is restricted to subscribers.
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:kap:regeco:v:18:y:2000:i:1:p:33-58
Ordering information: This journal article can be ordered from
http://www.springer. ... on/journal/11149/PS2
Access Statistics for this article
Journal of Regulatory Economics is currently edited by Menaham Spiegel
More articles in Journal of Regulatory Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().