Cooperative investment, access, and uncertainty

B-Tier
Journal: International Journal of Industrial Organization
Year: 2018
Volume: 56
Issue: C
Pages: 78-106

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper compares the impacts of traditional one-way access obligations and the new regulatory scheme of co-investment on the roll-out of network infrastructures. We show that compulsory access leads to smaller roll-out, first because it reduces the returns from investment, and second because in the presence of uncertainty it provides access seekers with an option whose exercise hurts investors. Co-investment without access obligations leads to risk sharing and eliminates the access option, implying highest network coverage. Allowing for access on top of co-investment actually decreases welfare if the access price is low.

Technical Details

RePEc Handle
repec:eee:indorg:v:56:y:2018:i:c:p:78-106
Journal Field
Industrial Organization
Author Count
3
Added to Database
2026-01-24