Competition Policy In Network Industries: An Introduction*
نویسنده
چکیده
We discuss issues of the application of antitrust law and regulatory rules to network industries. In assessing the application of antitrust in network industries, we analyze a number of relevant features of network industries and the way in which antitrust law and regulatory rules can affect them. These relevant features include (among others) network effects, market structure, market share and profits inequality, choice of technical standards, relationship between the number of active firms and social benefits, existence of market power, leveraging of market power in complementary markets, and innovation races. We find that there are often significant differences on the effects of application of antitrust law in network and non-network industries.
منابع مشابه
Promoting Competition with Open Access under Uncertainty∗
This paper examines the effect of open access policy on competition in network industries under uncertainty. Comparing a competition under an open access policy with a facility-based competition, we confirm that allowing access to an essential facility makes the timing of a follower’s entry earlier than that in a facility-based competition, irrespective of the level of access charge. Furthermor...
متن کاملPolicy Challenges in Two-Sided Network Industries
FOREWORD Europe Economics is an independent economics consultancy, specialising in economic regulation, competition policy and the application of economics to public policy and business issues. Most output is either private to clients, or published (a list of current published reports is available at: www.europe-economics.com). Europe Economics Staff Working Papers are intended to provide a com...
متن کاملDeregulating network industries: dealing with price-quality tradeoffs
This paper examines the effects of introducing competition into monopolized network industries on prices and infrastructure quality. Analyzing a model with reduced-form demand, we first show that deregulating an integrated monopoly cannot simultaneously decrease the retail price and increase infrastructure quality. Second, we derive conditions under which reducing both retail price and infrastr...
متن کاملNetwork Investment and Competition with Access-to-Bypass∗
This paper examines firms’ incentives to make irreversible investments under an open access policy with stochastically growing demand. Using a simple model, we derive an access-to-bypass equilibrium. Analysis of the equilibrium confirms that the introduction of competition in network industries makes a firm’s incentive to make investments greater than those of a monopolist. We then show that a ...
متن کاملPromoting Competition and Regulatory Policy: With Examples from Network Industries
INTRODUCTION It is a special pleasure for me to be here to address you today and to participate in the series of lectures organized by the Research Center for Regulation and Competition. We are helping to establish centers around the world to promote an understanding of competition and regulatory policy, and this is the first center in Asia (the other centers are in Argentina and Cote d'Ivoire)...
متن کامل