Network access pricing and deregulation

Daniel F. Spulber*, J. Gregory Sidak

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

8 Scopus citations

Abstract

The paper addresses the question of pricing access to the network facilities of an incumbent firm after deregulation. Network access pricing continues to be regulated in such industries as telecommunications, railroads, electric power and natural gas. We emphasize that access prices should be set such that they satisfy an individual rationality condition for the incumbent firm so that access is granted voluntarily. We examine the effects of the voluntary access condition on incentives for entry and show that properly chosen access prices provide incentives for efficient entry using several alternative competition models: Bertrand-Nash, Cournot-Nash and Cbamberlin competition with differentiated products.

Original languageEnglish (US)
Pages (from-to)757-780
Number of pages24
JournalIndustrial and Corporate Change
Volume6
Issue number4
StatePublished - Dec 1 1997

ASJC Scopus subject areas

  • Economics and Econometrics

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