Access pricing and market structure

Domon, Koji; Ota, Koshiro

doi:10.1016/s0167-6245(00)00034-2

Cited by 4 publications

(1 citation statement)

References 9 publications

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“…The more recent literature on access pricing generally deals with industries such as telecommunications, gas, and electricity where a vertically-integrated monopoly controls supply of a key input to its competitors (e.g., Laffont and Tirole, 1994;Armstrong et al, 1996;Domon and Ota, 2001). Essegaier et al (2002) investigates the effects of service capacity and consumer demand heterogeneity on a firm's choice between usage pricing, access pricing (i.e., a flat fee) and a two-part tariff.…”

Section: Introductionmentioning

confidence: 99%

Nonlinear pricing on private roads with congestion and toll collection costs

Wang

Lindsey

Yang

2011

Transportation Research Part B: Methodological

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Nonlinear pricing (a form of second-degree price discrimination) is widely used in transportation and other industries but it has been largely overlooked in the road-pricing literature. This paper explores the incentives for a profit-maximizing toll-road operator to adopt some simple nonlinear pricing schemes when there is congestion and collecting tolls is costly. Users are assumed to differ in their demands to use the road. Regardless of the severity of congestion, an access fee is always profitable to implement either as part of a two-part tariff or as an alternative to paying a toll. Use of access fees for profit maximization can increase or decrease welfare relative to usage-only pricing. Hence a ban on access fees could reduce welfare.

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Section: Introductionmentioning

confidence: 99%

Nonlinear pricing on private roads with congestion and toll collection costs

Wang

Lindsey

Yang

2011

Transportation Research Part B: Methodological

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Can Total Deregulation Be a Better Option Than Partial Deregulation?

Lin

2016

Singapore Econ. Rev.

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This paper examines entry deregulation in an industry where natural monopoly and potential competition are vertically related. We find that the upstream fixed cost plays an important role to affect the overall welfare comparison between total and partial deregulation. When the upstream fixed cost is sufficiently large, the number of downstream firms is limited in both situations; in other words, the duplication of downstream fixed costs is relatively irrelevant so that the double markup effect dominates. Consequently, the regulator can only replicate total deregulation to maximize social welfare in the event of partial deregulation. If it is the case, we suggest that total deregulation is superior to partial deregulation since the latter suffers more regulatory cost than that of the former.

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Price Regulation of Access to Telecommunications Networks

Vogelsang¹

2003

Journal of Economic Literature

117

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Without access of networks to each other, competition in the telecommunications sector would hardly have spread so quickly. Such mutual access is necessary for carriers to provide ubiquitous service and enable end-users to call and be called by anybody without subscribing to a system-wide monopolist. One-way access concerns bottleneck inputs provided by an incumbent network to entrants, while two-way access concerns the interconnection between networks. Whereas one-way access regulation is exclusively driven by containment of market power, two-way access is additionally affected by collusion possibilities. Among the numerous pricing rules discussed, none clearly dominates. This article provides a roadmap vis-a-vis the competing policy objectives for access price regulation.

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Access pricing and market structure

Cited by 4 publications

References 9 publications

Nonlinear pricing on private roads with congestion and toll collection costs

Nonlinear pricing on private roads with congestion and toll collection costs

Can Total Deregulation Be a Better Option Than Partial Deregulation?

Price Regulation of Access to Telecommunications Networks

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