2011
DOI: 10.2139/ssrn.1955209
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Can Access Price Indexation Promote Efficient Investment in Next Generation Networks?

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Cited by 2 publications
(3 citation statements)
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“…Thus, to achieve the same level of geographical coverage, the firm will require a lower access price under indexation than with a fixed access price. This paper extends both Henriques (2011) and Sauer (2012) by considering a more general set of properties for welfare, revenue, and cost of coverage, as well as non-linear access prices. The main contribution of this paper is to show that, under a standard set of assumptions, setting an access price as a function of NGA coverage can improve economic efficiency beyond what is feasible with a fixed access price.…”
Section: Introductionmentioning
confidence: 76%
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“…Thus, to achieve the same level of geographical coverage, the firm will require a lower access price under indexation than with a fixed access price. This paper extends both Henriques (2011) and Sauer (2012) by considering a more general set of properties for welfare, revenue, and cost of coverage, as well as non-linear access prices. The main contribution of this paper is to show that, under a standard set of assumptions, setting an access price as a function of NGA coverage can improve economic efficiency beyond what is feasible with a fixed access price.…”
Section: Introductionmentioning
confidence: 76%
“…2 Only exceptions such as Hurkens and Jeon (2008), Klumpp and Su (2010), Nitsche and Wiethaus L (2011), and Henriques (2011) and Sauer (2012) have considered the idea of access prices as a function of strategic variables, e.g., retail prices, quantities, or geographical coverage, as a means to improve welfare outcomes. Henriques (2011) and Sauer (2012) are the closest research works to this paper studying access prices for NGA as linear functions of geographical coverage. Both papers showed that such access prices incentivize further coverage from firms when compared with a fixed access price.…”
Section: Introductionmentioning
confidence: 99%
“…8 For this reason, these papers assume that the regulator can make ex ante credible commitments, and hence, the regulator sets the access price prior to the investment decisions. In this context, Henriques [64] and Sauer [65] show that contrary to a fixed access charge, an access fee that is contingent on firms' (non-overlapping) investments can implement the socially efficient investment level. This outcome holds either if the access charge depends on the investments of both the incumbent and the entrant (former article) or on each operator's own investment level (latter article).…”
Section: Deviation From Cost-based Access Pricesmentioning
confidence: 99%