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Public Policy in Network Industries

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Abstract

This paper discusses how antitrust law and regulatory rules should be applied to network industries. In assessing the application of antitrust in network industries, we analyze a number of relevant features of network industries and the way in which antitrust law and regulatory rules can affect them. These relevant features include (among others) network effects, market structure, market share and profits inequality, choice of technical standards, relationship between the number of active firms and social benefits, existence of market power, leveraging of market power in complementary markets, and innovation races. We find that there are often significant differences on the effects of application of antitrust law in network and non-network industries.

Suggested Citation

  • Nicholas Economides, 2006. "Public Policy in Network Industries," Working Papers 06-01, NET Institute, revised Sep 2006.
    • Handle: RePEc:net:wpaper:0601
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    File URL: http://www.stern.nyu.edu/networks/Economides_Public_Policy_In_Network_Industries.pdf
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    Cited by:

    1. María Fernanda Viecens, 2009. "Compatibility with Firm Dominance," Working Papers 2009-12, FEDEA.
    2. Athanasopoulos, Thanos, 2015. "Compatibility, Intellectual Property, Innovation and Welfare in Durable Goods Markets with Network E§ects," Economic Research Papers 270241, University of Warwick - Department of Economics.
    3. Athanasopoulos, Thanos, 2015. "Incentives to Innovate, Compatibility and Welfare in Durable Goods Markets with Network Effects," Economic Research Papers 270229, University of Warwick - Department of Economics.
    4. Vogelsang Ingo, 2013. "The Endgame of Telecommunications Policy? A Survey," Review of Economics, De Gruyter, vol. 64(3), pages 193-270, December.
    5. Viecens María Fernanda, 2011. "Compatibility with Firm Dominance," Review of Network Economics, De Gruyter, vol. 10(4), pages 1-27, December.
    6. Athanasopoulos, Thanos, 2014. "Compatibility, Intellectual Property,Innovation and Welfare in Durable Goods Markets with Network Effects," The Warwick Economics Research Paper Series (TWERPS) 1043, University of Warwick, Department of Economics.
    7. Nicholas Economides, 2007. "Nonbanks in the payments system: vertical integration issues," Proceedings – Payments System Research Conferences, Federal Reserve Bank of Kansas City.
    8. Athanasopoulos, Thanos, 2014. "Incentives to Innovate, Compatibility and Efficiency in Durable Goods Markets with Network Effects," The Warwick Economics Research Paper Series (TWERPS) 1054, University of Warwick, Department of Economics.

    More about this item

    Keywords

    networks; network effects; public policy; antitrust; telecommunications; technical standards; lock-in; net neutrality; Internet; Microsoft; Trinko;
    All these keywords.

    JEL classification:

    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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