The race for telecoms infrastructure investment with bypass: can access regulation achieve the first best?
João Vareda () and
Steffen Hoernig
Nova SBE Working Paper Series from Universidade Nova de Lisboa, Nova School of Business and Economics
Abstract:
We analyze the impact of mandatory access on the infrastructure investments of two competing communications networks, and show that for low (high) access charges ?rms wait (preempt each other). Contrary to previous results, under preemption a higher access charge can delay ?rst investment. While ?rst-best investment cannot be achieved with a ?xed access tari , simple instruments such as banning access in the future, or granting access holidays right after investment, can improve e ciency. The former forces investment when it would happen too late, while the latter allows for lower access charges in order to delay the second investment when it would happen too early.
Keywords: Access pricing; investments; preemption; access ban; access holidays (search for similar items in EconPapers)
JEL-codes: D92 L43 L51 L96 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2007
New Economics Papers: this item is included in nep-com, nep-mic and nep-reg
References: Add references at CitEc
Citations: View citations in EconPapers (12)
Downloads: (external link)
https://run.unl.pt/bitstream/10362/82847/1/WP524.pdf
Related works:
Working Paper: The Race for Telecoms Infrastructure Investment with Bypass: Can Access Regulation Achieve the First-best? (2007) 
Working Paper: The race for telecoms infrastructure investment with bypass: Can access regulation achieve the first best? (2007) 
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:unl:unlfep:wp524
Access Statistics for this paper
More papers in Nova SBE Working Paper Series from Universidade Nova de Lisboa, Nova School of Business and Economics Contact information at EDIRC.
Bibliographic data for series maintained by Susana Lopes ().