Geographic access markets and investments

Marc Bourreau; Carlo Cambini; Steffen Hoernig

doi:10.1016/j.infoecopol.2015.04.003

Geographic access markets and investments

Marc Bourreau
, Carlo Cambini
, Steffen Hoernig

ENSAE
Politecnico di Torino
Nova School of Business and Economics, Universidade Nova de Lisboa
Centre for Economic and Policy Research

Research output: Contribution to journal › Article › peer-review

16 Citations (Scopus)

Abstract

We analyze the adoption of access regimes that differ according to the prevailing degree of infrastructure competition in different geographical areas of a country. Our results show that, compared to a uniform access price, geographically differentiated access prices improve welfare and incentivize investment. However, when access provision in areas with infrastructure competition is deregulated, welfare might decrease, because multiple inefficient equilibria at the wholesale level emerge, with either too little or too much investment.

Original language	English
Pages (from-to)	13-21
Number of pages	9
Journal	Information Economics and Policy
Volume	31
DOIs	https://doi.org/10.1016/j.infoecopol.2015.04.003
Publication status	Published - 1 Jun 2015
Externally published	Yes

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 9 Industry, Innovation, and Infrastructure

Keywords

Geographical access regulation
Infrastructure investment
Wholesale competition

Access to Document

10.1016/j.infoecopol.2015.04.003

Cite this

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abstract = "We analyze the adoption of access regimes that differ according to the prevailing degree of infrastructure competition in different geographical areas of a country. Our results show that, compared to a uniform access price, geographically differentiated access prices improve welfare and incentivize investment. However, when access provision in areas with infrastructure competition is deregulated, welfare might decrease, because multiple inefficient equilibria at the wholesale level emerge, with either too little or too much investment.",

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AU - Cambini, Carlo

AU - Hoernig, Steffen

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N2 - We analyze the adoption of access regimes that differ according to the prevailing degree of infrastructure competition in different geographical areas of a country. Our results show that, compared to a uniform access price, geographically differentiated access prices improve welfare and incentivize investment. However, when access provision in areas with infrastructure competition is deregulated, welfare might decrease, because multiple inefficient equilibria at the wholesale level emerge, with either too little or too much investment.

AB - We analyze the adoption of access regimes that differ according to the prevailing degree of infrastructure competition in different geographical areas of a country. Our results show that, compared to a uniform access price, geographically differentiated access prices improve welfare and incentivize investment. However, when access provision in areas with infrastructure competition is deregulated, welfare might decrease, because multiple inefficient equilibria at the wholesale level emerge, with either too little or too much investment.

KW - Geographical access regulation

KW - Infrastructure investment

KW - Wholesale competition

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DO - 10.1016/j.infoecopol.2015.04.003

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SP - 13

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JO - Information Economics and Policy

JF - Information Economics and Policy

ER -

Geographic access markets and investments

Abstract

UN SDGs

Keywords

Access to Document

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