Abstract
The extent to which society benefits from an upgrade to a telecommunications network infrastructure depends on when that upgrade occurs. This paper discusses a proactive pricing approach in which the regulator defines a pricing policy to induce a profit-seeking monopoly carrier to upgrade the infrastructure at the socially desirable time. We discuss how the regulator can determine the optimal time to upgrade the infrastructure and specify a proactive pricing policy to induce that timing. We also demonstrate a tradeoff between promoting social efficiency and protecting consumer interests in applying that approach.
Original language | English (US) |
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Pages (from-to) | 161-176 |
Number of pages | 16 |
Journal | Information Economics and Policy |
Volume | 9 |
Issue number | 2 SPEC. ISS. |
DOIs | |
State | Published - Jun 1997 |
Externally published | Yes |
Keywords
- Infrastructure
- Monopoly
- Pricing
- Regulation
- Telecommunications
ASJC Scopus subject areas
- Economics and Econometrics
- Management, Monitoring, Policy and Law