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On the design of performance measurement plans in the telecommunications industry

Author

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  • Wood, LisaV.
  • Sappington, DavidE.M.

Abstract

This paper analyzes the design of performance measurement and remedy plans that have been implemented in the telecommunications industry to ensure competitive local exchange carriers are afforded a meaningful opportunity to compete in the provision of local exchange services. It demonstrates that the plans can impose penalties on incumbent local exchange carriers even when the incumbents provide the same or higher level of wholesale service quality to their competitors than they provide to themselves. Simulations are employed to illustrate the magnitude of these penalties.

Suggested Citation

  • Wood, LisaV. & Sappington, DavidE.M., 2004. "On the design of performance measurement plans in the telecommunications industry," Telecommunications Policy, Elsevier, vol. 28(11), pages 801-820, December.
    • Handle: RePEc:eee:telpol:v:28:y:2004:i:11:p:801-820
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    Citations

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    Cited by:

    1. Chen, Yongmin & Sappington, David E.M., 2009. "Designing input prices to motivate process innovation," International Journal of Industrial Organization, Elsevier, vol. 27(3), pages 390-402, May.
    2. Arup Bose & Debashis Pal & David E. M. Sappington, 2016. "On the Merits of Antitrust Liability in Regulated Industries," Journal of Law and Economics, University of Chicago Press, vol. 59(2), pages 359-392.
    3. Bose, Arup & Pal, Debashis & Sappington, David E.M., 2017. "Pricing to preclude sabotage in regulated industries," International Journal of Industrial Organization, Elsevier, vol. 51(C), pages 162-184.
    4. David Sappington, 2006. "On the Merits of Vertical Divestiture," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 29(3), pages 171-191, November.
    5. Mandy, David M. & Mayo, John W. & Sappington, David E.M., 2016. "Targeting efforts to raise rivals' costs: Moving from “Whether” to “Whom”," International Journal of Industrial Organization, Elsevier, vol. 46(C), pages 1-15.
    6. Debashis Pal & David Sappington & Ying Tang, 2012. "Sabotaging cost containment," Journal of Regulatory Economics, Springer, vol. 41(3), pages 293-314, June.

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