Reference : Regulation of an Open Access Essential Facility
Scientific journals : Article
Business & economic sciences : Microeconomics
http://hdl.handle.net/2268/10788
Regulation of an Open Access Essential Facility
English
Gautier, Axel mailto [Université de Liège - ULg > HEC - Ecole de gestion de l'ULg > Economie industrielle >]
Mitra, Manipushpak [> >]
Nov-2008
Economica
Blackwell Publishing
75
662-682
Yes (verified by ORBi)
International
0013-0427
Oxford
United Kingdom
[en] Regulation ; open access ; access pricing
[en] A vertically integrated firm owns an essential input and operates on the downstream market. There is a potential entrant in the downstream market. Both firms use the same essential input. The regulator’s objectives are (i) to ensure financing of the essential input and (ii) to generate competition in the downstream market. The regulatory mechanism grants non-discriminatory access of the essential facility to the entrant provided it pays a two-part tariff to the incumbent. The optimal mechanism generates inefficient entry. The inefficient entry captures the trade-off between market efficiency and infrastructure financing resulting from incomplete information and non-discriminatory access.
Centre de Recherche en Économie Publique et de la Population - C.R.E.P.P
http://hdl.handle.net/2268/10788
10.1111/j.1468-0335.2007.00638.x

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