Regulation and investment in network Industries: evidence from European telecoms by Michał Grajek and Lars-Hendrik Röller
Material type:
- text
- unmediated
- volume
- 00222186
- HB73 JOU
Item type | Current library | Call number | Vol info | Copy number | Status | Notes | Date due | Barcode | |
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Main Library - Special Collections | HB73 JOU (Browse shelf(Opens below)) | Vol. 55, no.1 (pages 189-216) | SP12383 | Not for loan | For in house only |
We provide evidence of an inherent trade-off between access regulation and investment incentives in telecommunications by using a comprehensive data set covering more than 70 fixed-line operators in 20 countries over 10 years. Our econometric model accommodates different investment incentives for incumbents and entrants, a strategic interaction of entrants’ and incumbents’ investments, and endogenous regulation. We find access regulation to have a negative effect on both total industry and individual carrier investment. Thus, promoting market entry by means of regulated access undermines incentives to invest in facilities-based competition. Moreover, we find evidence of a regulatory commitment problem: higher investments by incumbents encourage regulated access provision
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