How regulation affects network and service quality in related markets

Justus Haucap and Gordon Klein

No 52, DICE Discussion Papers from Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)

Abstract: We analyze how network regulation affects investment into network infrastructure and complementary services. While regulation negatively affcets investment incentives in the regulated network market, the effects of network regulation on investment in complementary services can be either negative or positive, depending on the relative weight consumers assign to infrastructure versus service quality. We also find constellations, where regulation can enhance perceived total quality.

JEL-codes: D43 L13 L51 L96 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-com, nep-ind and nep-tre
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:dicedp:52

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