Open Access and Dynamic Efficiency

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2010
Volume: 2
Issue: 2
Pages: 64-96

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

In our model, production of a final good requires access to an excludable resource owned by an integrated firm. The quality of the resource depends on an investment by the owner and impacts the downstream demand curve. Under open access, the owner must share the resource with downstream competitors at a regulated tariff. We show that quality exceeds the monopoly level, and increases with the number of competitors, if the access tariff is set according to a principle we call revenue neutrality. Our results contradict the notion that dynamic efficiency must be sacrificed for gains in static (allocative) efficiency. (JEL D21, D43, D45, L24, O34)

Technical Details

RePEc Handle
repec:aea:aejmic:v:2:y:2010:i:2:p:64-96
Journal Field
General
Author Count
2
Added to Database
2026-01-25