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Optimal reciprocal access pricing and collusion

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  • Alderighi, Macro

Abstract

This work extends the network competition model of Armstrong [(1998). Network interconnection in telecommunications. Economic Journal, 108, 545-564] and Laffont, Rey, and Tirole (1998). Network competition: I. Overview and nondiscriminatory pricing. RAND Journal of Economics, 29, 1-37] by assuming that operators can maintain a certain level of collusion in the unregulated retail market, and access prices may be regulated through non-linear tariffs. It emerges that, in the case of partially collusive environments, the regulator can design cost-based non-linear access charges such that the result is socially optimal.

Suggested Citation

  • Alderighi, Macro, 2008. "Optimal reciprocal access pricing and collusion," Telecommunications Policy, Elsevier, vol. 32(6), pages 381-387, July.
    • Handle: RePEc:eee:telpol:v:32:y:2008:i:6:p:381-387
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