Opening Networks to Competition: The Regulation and Pricing of Access / Edition 1

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This book addresses the related problems of regulating and pricing access in network industries. Interconnection between network suppliers raises questions of how to sustain competition and realize economic efficiency. New entrants must have access to customers in a competitive industry, but the very nature of network industries limits potential entrants. The large fixed and sunk costs of constructing networks and the difficulty in acquiring the expertise and competencies embodied in the managerial and organizational structure of incumbents in the network industry make it difficult to enter this marketplace. As a result, new entrants, realizing that they may not be able to provide customers with service comparable to that of the incumbents, often look to negotiate an interconnection agreement.
This book is divided into two parts. Part I assesses regulation and pricing access in network industries from an analytical and policy perspective. Part II presents a variety of case studies examining interconnection issues over time and across industries. The book concludes with the idea that no single economic model or theory is appropriate for all network industries and that one needs to factor in the policy objectives, economic forces, and trade-offs for the specific industry before arriving at a final policy decision.

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Editorial Reviews

Ten papers from a November 1993 conference at Columbia University explore the related problems of regulating and pricing access both in traditional network industries such as gas, electric, rail, and telephones services and in the newer sectors such as microcomputers, automated teller machines, and credit card markets. They discuss the high entry barrier and the interest of incumbent companies to refuse to negotiate interconnection agreements with newcomers. Among the case studies cited are telecommunications in New Zealand, rail freight compared to telecommunications, railways in Britain, and the exclusionary behavior of Microsoft in the operating system market. Annotation c. by Book News, Inc., Portland, Or.
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Product Details

  • ISBN-13: 9780792380191
  • Publisher: Springer US
  • Publication date: 10/30/1997
  • Series: Topics in Regulatory Economics and Policy Series, #27
  • Edition description: 1998
  • Edition number: 1
  • Pages: 245
  • Product dimensions: 0.69 (w) x 9.21 (h) x 6.14 (d)

Table of Contents

1. Introduction; D. Gabel, D.F. Weiman. Part I: Networks and Access: Theoretical and Policy Perspectives. 2. One-Way Networks, Two-Way Networks, Compatibility, and Public Policy; N. Economides, L.J. White. 3. Markup Pricing for Interconnection: A Conceptual Framework; B.M. Mitchell, I. Vogelsang. 4. Problems in Creating Effective Competition; W.G. Shepherd. Part II: Case Studies. 5. Historical Perspectives on Competition and Interconnection Between Local Exchange Companies: The United States, 1894-1914; D. Gabel, D.F. Weiman. 6. On the Frontier of Deregulation: New Zealand Telecommunications and the Problem of Interconnecting Competing Networks; M. Mueller. 7. Competitive Access Policies in the Rail Freight Industry, with Comparisons to Telecommunications; C.M. Grimm, R.G. Harris. 8. Social Obligations and Access Pricing: Telecommunications and Railways in the UK; M. Armstrong, C. Doyle. 9. Access Demands and Network Joint Ventures; D.A. Balto. 10. Exclusionary Behavior in the Market for Operating System Software: The Case of Microsoft; G.A. Woroch, et al. Index.

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