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Parity Pricing and Its Critics: Necessary Condition for Efficiency in Provision of Bottleneck Services to Competitors

Author

Listed:
  • Baumol, W,
  • Ordover, J.
  • Willig, R.

Abstract

The paper will show tha bottleneck input service sold by its owner to competitors in the supply of final product must be priced in accord with ECPR if ineffeciency in resource allocation is to be prevented.

Suggested Citation

  • Baumol, W, & Ordover, J. & Willig, R., 1996. "Parity Pricing and Its Critics: Necessary Condition for Efficiency in Provision of Bottleneck Services to Competitors," Working Papers 96-33, C.V. Starr Center for Applied Economics, New York University.
    • Handle: RePEc:cvs:starer:96-33
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    Citations

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    Cited by:

    1. Christine Brandstätt & Gert Brunekreeft & Nele Friedrichsen, 2013. "The Need for More Flexibility in the Regulation of Smart Grids – Stakeholder Involvement," Bremen Energy Working Papers 0013, Bremen Energy Research.
    2. Kang Sawoong, 2011. "Mandating Wholesale Provisions with the Retail-minus Regulation in Mobile Telecommunications," Asian Journal of Law and Economics, De Gruyter, vol. 2(3), pages 1-27, October.
    3. Laffont, Jean-Jacques & Tirole, Jean, 2000. "Global Price Caps and the Regulation of Access," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 20(1), May.
    4. Gert Brunekreeft, 2002. "Regulation and Third-Party Discrimination in the German Electricity Supply Industry," European Journal of Law and Economics, Springer, vol. 13(3), pages 203-220, May.
    5. Nele Friedrichsen & Christine Brandstätt & Gert Brunekreeft, 2014. "The need for more flexibility in the regulation of smart grids – stakeholder involvement," International Economics and Economic Policy, Springer, vol. 11(1), pages 261-275, February.
    6. Brunekreeft, Gert, 2001. "Regulation and third-party discrimination in vertically related markets: The case of German electricity," Discussion Papers 74 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.

    More about this item

    Keywords

    PRICING; COMPETITION; MONOPOLIES;
    All these keywords.

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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