TY  - BOOK
AU  - Grajek,Michał
AU  - Röller, Lars-Hendrik
TI  - Regulation and investment in network Industries: evidence from European telecoms
SN  - 00222186
AV  - HB73 JOU 
PY  - 2012///
CY  - Chicago
PB  - University of Chicago Press
N2  - 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
UR  - https://doi.org/10.1086/661196
ER  -