Competitive Neutrality Via Differential Access Pricing: Preservation of Desired Cross Subsidies Under Competitive Entry

William Baumol

Working Papers from C.V. Starr Center for Applied Economics, New York University

Abstract: This article proposes a regulatory system of non-uniform and competitively beutral pricing of access to the services of a bottleneck facility such as the local loop owned by a local telephone company. To be deemed a bottleneck the facility must be owned as a monopoly, and its services must be indispensable inputs of the final products of competing suppliers. It is shown that the proposed pricing rule is competitively neutral, meaning that it does not favor incumbents in teh final-product market over entrants or the inverse.

Keywords: ACCESS TO MARKETS; PRICING; DISCRIMINATION; SUBSIDIES; COMPETITION (search for similar items in EconPapers)
JEL-codes: L51 (search for similar items in EconPapers)
Pages: 16 pages
Date: 1997
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:cvs:starer:97-40

Ordering information: This working paper can be ordered from
C.V. Starr Center, Department of Economics, New York University, 19 W. 4th Street, 6th Floor, New York, NY 10012

Access Statistics for this paper

More papers in Working Papers from C.V. Starr Center for Applied Economics, New York University C.V. Starr Center, Department of Economics, New York University, 19 W. 4th Street, 6th Floor, New York, NY 10012. Contact information at EDIRC.
Bibliographic data for series maintained by Anne Stubing ( this e-mail address is bad, please contact ).