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provide higher quality services to all consumers. The externality renders the market outcome inefficient. Price regulation … partially overcomes this inefficiency and Pareto-improves upon the market outcome. If market entry of experts is endogenous …, price regulation should be accompanied by licensing arrangements that cap the number of experts in the market. Our theory …
Persistent link: https://www.econbiz.de/10012431181
Persistent link: https://www.econbiz.de/10012026715
This paper investigates the impacts of the current roaming rules on domestic competition and welfare. We consider a … wholesale roaming charges can be sensitive to this regulatory regime. Since introducing a fair use clause in roaming regulation …
Persistent link: https://www.econbiz.de/10012804890
We introduce a model of asymmetric competition where two network operators with different investment costs may build an … network operators build an infrastructure. We also show that potential entry of a virtual operator increases welfare if the … virtual operator requests access from the low cost network operator, because it reduces the geographical area where both …
Persistent link: https://www.econbiz.de/10012004876
Persistent link: https://www.econbiz.de/10011706935
Why do people appear to forgo information by sorting into “echo chambers”? We construct a highly tractable multi-sender, multi-receiver cheap talk game in which players choose with whom to communicate. We show that segregation into small, homogeneous groups can improve everybody’s...
Persistent link: https://www.econbiz.de/10012265620
Credence goods markets, such as those for car repairs and medical treatments, are generally characterized by an ex-ante and ex-post information asymmetry between the uninformed buyer and the informed seller. Previous literature demonstrates that efficiency and fraud in a monopolist credence...
Persistent link: https://www.econbiz.de/10012286246
This paper models competition between two firms, which provide broadband In-ternet access in regional markets with …-based and facility-based entry. The usual trade-off between static and dynamic efficiency does not apply in the sense that … the entrant's investment decision. While investment lowers marginal costs in regions with facility-based entry, it …
Persistent link: https://www.econbiz.de/10011526221
economic laboratory experiment we compare the market outcomes under unregulated wholesale competition, under a price … scenario. In contrast, we do not find evidence that a margin squeeze regulation reduces retail market prices. In fact, while …
Persistent link: https://www.econbiz.de/10011445891
regulation. In our example, the termination rates have been part of a vertical restriction strategy. The observed network … competition, rest on a cost-based asymmetric price regulation. The further research allows a statistical assessment of the …In theory, network profits are independent of the reciprocal termination rates when operators charge nondiscriminatory …
Persistent link: https://www.econbiz.de/10012012970