Should uniform pricing constraints be imposed on entrants?

被引:1
作者
Steffen H. Hoernig
机构
[1] Universidade Nova de Lisboa,School of Economics
[2] CEPR,undefined
来源
Journal of Regulatory Economics | 2006年 / 30卷
关键词
Uniform pricing; Coverage constraints; Price caps; Entry; L43; L51; L52;
D O I
暂无
中图分类号
学科分类号
摘要
This paper analyzes uniform pricing, coverage constraints and price caps in markets newly opened to competition, e.g. broadband services. We show that the requirement of uniform pricing has strong repercussions on coverage decisions. Imposed on incumbents only it may distort their coverage decision downward to avoid duopoly entry. If also imposed on entrants it increases the likelihood that entry leads to independent monopolies rather than competition. A sufficiently large coverage constraint on incumbents reestablishes incentives for duopoly entry, but may lead to higher prices.
引用
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页码:199 / 216
页数:17
相关论文
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