This book addresses the related problems of regulating and pricing access in network industries. Interconnection between network suppliers raises questions of how to sustain competition and realize economic efficiency. New entrants must have access to customers in a competitive industry, but the...

Examination of aircraft engine histories provided by Pratt & Whitney, Inc., indicates a significant increase in the number of engine hours between major overhauls in the period following deregulation. Parametric analysis of times between overhauls, which controls for other variables affecting...

Incentive regulation for some of the services provided by local exchange carriers in the U.S. telecommunications industry is based on price caps. Under price caps, a regulated firm's average real prices for services it provides are required to fall by a specified percentage each year. This...

This paper demonstrates the feasibility of the TELRIC standard. We develop an engineering-economic model of an interoffice telephone network suitable for calculating a TELRIC interconnection cost. The model utilizes the method of simulated annealing to determine an "optimal" SONET ring. Using...

Local exchange companies (LECs) have argued that, because of entry, they will no longer be able to subsidize residential exchange service. The available economic data show that residential service is not subsidized. This finding casts doubt over the need for entrants to contribute to a universal...

While economies of scale and scope have been extensively studied in traditional telephone networks, thus far little academic attention has been paid to the effect of cellular communications, which is one of the most rapidly growing segments of the telecommunications system. We use LECOM--our...