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dc.contributor.authorMANENTI, Fabio
dc.contributor.authorSCIALÀ, Antonio
dc.date.accessioned2011-06-24T10:02:21Z
dc.date.available2011-06-24T10:02:21Z
dc.date.issued2011-06-24
dc.identifier.issn1028-3625
dc.identifier.urihttp://hdl.handle.net/1814/17975
dc.description.abstractThis paper presents a model of competition between an incumbent and an entrant firm in telecommunications. The entrant has the option to enter the market with or without having preliminary invested in its own infrastructure; in case of facility based entry, the entrant has also the option to invest in the provision of enhanced services. In case of resale based entry the entrant needs access to the incumbent network. Unlike the rival, the incumbent has always the option to upgrade the existing network to provide advanced services. We study the impact of access regulation on the type of entry and on firms' investments. Without regulation, we find that the incumbent sets the access charge to prevent resale based entry and this overstimulates rival's investment that may turn out to be socially inefficient. Access regulation may discourage welfare enhancing investments, thus also inducing a socially inefficient outcome. We extend the model to account for negotiated interconnection in case of facilities based entry.en
dc.format.mimetypeapplication/pdf
dc.language.isoenen
dc.relation.ispartofseriesEUI RSCASen
dc.relation.ispartofseries2011/37en
dc.relation.ispartofseriesFlorence School of Regulationen
dc.rightsinfo:eu-repo/semantics/openAccess
dc.subjecttelecommunicationsen
dc.subjectladder of investmenten
dc.subjectaccess regulationen
dc.subjectinterconnectionen
dc.titleAccess Regulation, Entry, and Investment in Telecommunicationsen
dc.typeWorking Paperen
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