We analyze the adoption of access regimes that differ according to the prevailing degree of infrastructure competition in different geographical areas of a country. Our results show that, compared to a uniform access price, geographically differentiated access prices improve welfare and incentivize investment. However, when access provision in areas with infrastructure competition is deregulated, welfare might decrease, because multiple inefficient equilibria at the wholesale level emerge, with either too little or too much investment. (C) 2015 Elsevier B.V. All rights reserved.
机构:
Penn State Univ, Agr Econ Sociol & Educ, University Pk, PA 16802 USANew York Univ, Nutr Food Studies & Publ Hlth, 411 Lafayette St,5th Floor, New York, NY 10003 USA
Oberholtzer, Lydia
Nischan, Michel
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机构:
Wholesome Wave, Bridgeport, CT USANew York Univ, Nutr Food Studies & Publ Hlth, 411 Lafayette St,5th Floor, New York, NY 10003 USA