Should uniform pricing constraints be imposed on entrants?

Steffen Hoernig

Journal of Regulatory Economics, 2006, vol. 30, issue 2, 199-216

Abstract: This paper analyzes uniform pricing, coverage constraints and price caps in markets newly opened to competition, e.g. broadband services. We show that the requirement of uniform pricing has strong repercussions on coverage decisions. Imposed on incumbents only it may distort their coverage decision downward to avoid duopoly entry. If also imposed on entrants it increases the likelihood that entry leads to independent monopolies rather than competition. A sufficiently large coverage constraint on incumbents reestablishes incentives for duopoly entry, but may lead to higher prices. Copyright Springer Science+Business Media, LLC 2006

Keywords: Uniform pricing; Coverage constraints; Price caps; Entry; L43; L51; L52 (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
http://hdl.handle.net/10.1007/s11149-006-0013-6 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Should Uniform Pricing Contraints be Imposed on Entrants? (2005)
Working Paper: Should uniform pricing constraints be imposed on entrants? (2002)
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:kap:regeco:v:30:y:2006:i:2:p:199-216

Ordering information: This journal article can be ordered from
http://www.springer. ... on/journal/11149/PS2

DOI: 10.1007/s11149-006-0013-6

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 ().