Access Pricing, Competition, and Incentives to Migrate From "Old" to "New" Technology

Marc Bourreau, Carlo Cambini and Pinar Dogan ()

Scholarly Articles from Harvard Kennedy School of Government

Abstract: In this paper, we analyze the incentives of an incumbent and an entrant to migrate from an "old" technology to a "new" technology, and discuss how the terms of wholesale access affect this migration. We show that a higher access charge on the legacy network pushes the entrant firm to invest more, but has an ambiguous effect on the incumbent's investments, due to two conflicting effects: the wholesale revenue effect, and the business migration effect. If both the old and the new infrastructures are subject to ex-ante access regulation, we also find that the two access charges are positively correlated.

Date: 2011
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Citations: View citations in EconPapers (8)

Published in HKS Faculty Research Working Paper Series

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http://dash.harvard.edu/bitstream/handle/1/5098425/RWP11-029_Dogan.pdf (application/pdf)

Related works:
Journal Article: Access pricing, competition, and incentives to migrate from “old” to “new” technology (2012)
Working Paper: Access pricing, competition, and incentives to migrate from “old” to “new” technology (2012)
Working Paper: Access Pricing, Competition, and Incentives to Migrate from "Old" to "New" Technology (2011)
Working Paper: Access Pricing, Competition, and Incentives to Migrate From "Old" to "New" Technology
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