Using 'Bill and Keep' Interconnect Arrangements to Soften Network Competiti on.

This paper demonstrates that low (below marginal cost) interconnect or access charges can be used to sustain high subscription prices in an environment of network competition with two-part tariffs and price discrimination. This result stands in contrast to other results in the literature suggesting that high interconnect charges can play a collusive role.

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Year of publication:	2000
Authors:	Gans, J.S. ; King, S.P.
Institutions:	Department of Economics, Faculty of Business and Economics
Subject:	MONOPOLIES \| TELECOMMUNICATIONS \| COMPETITION

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Series:	Department of Economics - Working Papers Series.
Type of publication:	Book / Working Paper
Notes:	Number 739 12 pages
Classification:	L41 - Monopolization; Horizontal Anticompetitive Practices ; L96 - Telecommunications
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005750870