Technology investment and alternative regulatory regimes with demand uncertainty, Carlo Cambini, Virginia Silvestri
Type
Contributor
2
Creator
1
Content
1
Author
1
Is part of
1
Mapped to
1
Label
Technology investment and alternative regulatory regimes with demand uncertainty, Carlo Cambini, Virginia Silvestri
Language
eng
Abstract
A vertically integrated incumbent and an OLO (Other Licensed Operator) dynamically compete in the market for broadband access. The incumbent has the option to invest in building a Next Generation Network that covers all urban areas with similar demand structures. The investment return in terms of demand increase is uncertain. We compare the impact of different access price regulation regimes - full regulation, partial regulation (only the copper network is regulated), risk sharing - on investment incentives and social welfare. We find that, compared to Foros (2004), the OLO gets better access condition in case of partial regulation and exclusion does not necessarily happen in equilibrium even if the incumbent has more ability than the OLO. Moreover, risk sharing emerges as the most preferable regime both from a consumer and a social welfare perspective for a large range of parameters
Bibliography note
Includes bibliographical references (pages 41-43)
Index
no index present
Literary form
non fiction
Main title
Technology investment and alternative regulatory regimes with demand uncertainty
Oclc number
811254628
Responsibility statement
Carlo Cambini, Virginia Silvestri
Series statement
EUI working papers. RSC, 2012/15EUI papersFlorence School of Regulation
Incoming Resources
- Has instance1