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Ex Post Regulation Facilitates Collusion

Author

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  • Beschorner, Patrick Frank Ernst

Abstract

Under ex ante access regulation entrants often claim that access fees are excessive. I show that this is only the case if further entry is admitted. If the entrant is protected from further entry it would agree with the incumbent upon a strictly positive access fee which may exceed the efficient level. Ex post regulation facilitates this type of collusion and should be abandoned.

Suggested Citation

  • Beschorner, Patrick Frank Ernst, 2008. "Ex Post Regulation Facilitates Collusion," ZEW Discussion Papers 08-099, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:7473
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    References listed on IDEAS

    as
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    7. Dewatripont,Mathias & Hansen,Lars Peter & Turnovsky,Stephen J. (ed.), 2003. "Advances in Economics and Econometrics," Cambridge Books, Cambridge University Press, number 9780521524117, November.
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    More about this item

    Keywords

    entry deterrence; access regulation; network infrastructure; vertical differentiation;
    All these keywords.

    JEL classification:

    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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