Asymmetric Regulation of Access and Price Discrimination in Telecommunications*

Martin Peitz

Journal of Regulatory Economics, 2005, vol. 28, issue 3, 327-343

Abstract: Suppose that a strong and a weak operator compete in a telecommunications market. To terminate a call operators need access to the competitor’s network if the call is off-net. Operators set two-part tariffs and price-discriminate according to termination of a call. Suppose as a benchmark that access prices are regulated at costs. I show that the weak operator’s profit and consumer welfare increase if the regulator sets a higher price to access the weak operator’s network. However, total surplus decreases even locally. Copyright Springer Science+Business Media, Inc. 2005

Keywords: access price; entry; interconnection charge; regulation; telecommunications; termination-based price discrimination; L96; L51; L13 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (32)

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DOI: 10.1007/s11149-005-3963-1

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