In this paper I review the recent paper by DeGraba (2000) that proposes a version of Bill and Keep (called COBAK) as the efficient interconnection regime. I argue while the proposed interconnection regime is suitable for some types of interconnection it would be quite undesirable for others. I...

In a critique of my paper outlining the Central Office Bill and Keep (COBAK) proposal, Wright (2001) offers two sets of conditions under which a COBAK interconnection regime would not lead to optimal utilization. While there could be conditions under which some interconnection regime other than...

This paper reviews the recent literature on the economics of open source software. Two different sets of issues are addressed. The first looks at the incentives of programmers to participate in open source projects. The second considers the business models used by profit-making firms in the open...

I review two papers, addressing the issue of competition and quality determination in the market for Internet access services (Crémer, Rey, and Tirole (2000), Foros and Hansen (2001)). These two works come to seemingly opposite conclusions. After having summarized the two papers, I try to...

In May 2002, the Supreme Court upheld the rules promulgated by the Federal Communications Commission (FCC) to implement provisions in the Telecommunications Act of 1996 (the Act) regarding mandatory resale of the components of local telephone networks. This article explains the background of the...

The Supreme Court's decision in Verizon v. FCC rests on two errant interpretations of the 1996 Telecommunications Act: First, the Act represents a new form of regulation rather than a deregulatory statute; Second, Congress intended that the playing field be tilted in favor of new entrants. Under...

The Supreme Court decision in Verizon et al v. FCC et al has finally settled the legality of the FCC's methodology for setting prices for wholesale services that are "based on cost", as required by the Telecommunications Act of 1996. The Court's decision reveals unanimous agreement that...

The Supreme Court Opinion on local exchange competition in general and on pricing and unbundling in particular was much anticipated and will be much discussed. Because of the very technical nature of the pricing and unbundling rules facing incumbent local exchange carriers there is a...

This paper addresses the fundamental question of what costs and prices would look like under competitive conditions and how close the FCC's total element long-run incremental cost (TELRIC) pricing rules allow one to approximate such competitive outcomes. We consider: what types of firms would...

One of the most important issues in the debate on interconnect regulation has been use of forward looking costs for setting of interconnection charges. This debate has been ongoing within the EU as well as in US. This paper discusses the European experiences and in particular the Danish...